New Delhi, Oct. 23
Ruchira Papers Pvt Ltd, a Himachal Pradesh-based kraft paper manufacturer, said on Monday that SEBI had approved its plans to raise Rs 28.5 crore through the Initial Public Offering (IPO), being made through the 100 per cent book building process. The funds would be utilised towards setting up a manufacturing unit at Kala-Amb in Himachal Pradesh.
Punjab National Bank and A K Capital Services Ltd are the book running lead managers for the issue.
Out of the total cost of Rs 135.5-crore for the manufacturing unit, Rs 93.48 crore is being funded by a consortium of bankers, Rs 9 crore by the promoters, Rs 12 crore through internal accruals, and the rest will be raised through the IPO.
Ruchira Papers is engaged in the manufacturing of kraft paper, with a market value of about Rs 100 crore. The company's current capacity is 52,800 tonnes per annum, and with new facility it would increase to 85,800 tonnes per annum.
The company clocked a turnover of Rs 62.61 crore in 2005-06 and reported a net profit of Rs 3.02 crore for the first half of 2006-07 with a turnover of Rs 37.76 crore.