Deep Polymers has approved a bonus issue of equity shares in the ratio of three fully paid-up equity share of ₹10 each for every four held by the shareholders. In addition, it plans to raise ₹48 crore through rights issue.
The decisions were taken at the company’s board meeting held on Saturday. The company will also increase authorised capital from ₹20 to ₹30 crore.
Headed by entrepreneur Ramesh Patel, the company plans to set up a new manufacturing unit on 33,600 square metres at Gandhinagar in Gujarat.
Last August, it announced the acquisition of Deep Plast for about ₹55 crore. On a consolidated basis, its total revenue is expected to touch ₹200 crore in this financial year and profit of ₹13-14 crore, said an analyst.
The company produces six speciality chemicals and plans to targets export market for better margins.
The new unit will primarily manufacture two products -- black and colour masterbatch, which are used in different types of fibres.
The entire product of the new unit will be exported to Germany and other European countries as raw material for making polyester and fabric.
The company expects Gandhinagar project to kickstart in next 6 to 8 months