Stocks

Andhra Paper slumps as promoter plans to cut stake

?OUR BUREAU Chennai | Updated on June 25, 2020 Published on June 25, 2020

Offer-for-sale has greenshoe option to sell additional 7.2 per cent stake

Shares of Andhra Paper slumped 15.87 per cent on Thursday at ₹197 on the BSE, as one of its promoters plans to dilute its stake in the company through an offer-for-sale (OFS). The floor price for the sale has been fixed as ₹186, the company said in a disclosure to the stock exchanges.

International Paper Investments (Luxembourg) SARL, one of the promoters of Andhra Paper, has proposed to sell 39.77 lakh shares, representing 10 per cent, of the total paid-up share capital of the company on Thursday for non-retail investors, and on Friday, for retail investors through the OFS window.

The OFS has also a greenshoe option to additionally sell up to 28.64 lakh shares, representing 7.2 per cent.

Currently, International Paper Investments holds 20 per cent stake in the company. It may be recalled that in 2011 International Paper had bought the then Andhra Pradesh Paper Mills for ₹1,400 crore and renamed it International Paper APPM.

West Coast stake at 72%

However, subsequently in 2019, International Paper sold over 50 per cent stake in International Paper APPM to West Coast Paper Mills. Currently, West Coast Mills owns 72.2 per cent stake in Andhra Paper.

The name of International Paper APPM was once again changed to Andhra Paper in early 2020.

Some 36,000 shares changed hands on the BSE against the two-week average of 1,695 shares; on the NSE, 6.25 lakh shares changed hands.

For the quarter ended March 2020, Andhra Paper had posted a profit of ₹92.92 crore and revenues of ₹279.67 crore. For FY20, profit stood at ₹212.92 crore and revenues ₹1,269.70 crore.

Published on June 25, 2020
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