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Paramount Printpackaging plans to raise around Rs 45 crore with its initial public offering that will open on April 20.
The price band for the issue has been fixed at Rs 32-35. The issue closes on April 25.
Paramount is a packaging solutions provider and says it has over 100 clients in various sectors such as FMCG, pharmaceuticals, the electrical industry, auto ancillary, and food and beverages.
The company has on offer 1.3 crore shares and plans to raise Rs 41 crore at the lower end and Rs 45 crore at the upper end of the price band. The shares offered represent 49.04 per cent of the fully diluted post-issue paid-up capital.
The net proceeds of the IPO will be used to set up new facilities for manufacturing of high-end duplex board cartons, shippers and printed corrugated boxes at Gujarat, said a press release. The plant at Gujarat will be fully functional by the third quarter of FY12, said Mr Divyesh Sukhadia, Chairman and MD, Paramount Printpackaging Ltd. The cost of setting up the new plant is around Rs 5 crore, he added.
The company has a manufacturing plant in Navi Mumbai with capacity of making approximately 20 lakh cartons a day, around 500 tonnes in terms of paper board. The new plant is expected to increase production by 15 lakh cartons a day, along with 5 tonnes a day of shippers (a kind of packaging) and seven lakh tonnes a day of corrugated cartons, the release added.
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