Ballarpur Industries (Bilt), the Lalit Mohan Thapar group flagship, has drawn up plans to come up with a rights issue of around Rs 210 crore. According to sources, the issue is likely during the company's financial year ending 30 June, 2002.
The rights issue is expected to be priced in the range of Rs 35-42. It will be in the form of fully convertible debentures with shareholders having the option to convert the debentures within 12 months of the issue date. The unsubscribed portion will be picked up by the promoter of the company, Lalit Mohan Thapar.
The proceeds of the issue will be used by Bilt to pick up a 67 per cent stake in Bilt Graphic Papers Ltd. Called Sinar Mas India earlier, this company was taken over by Bilt Paper Holdings, a closely-held LMT company, last year. Bilt now plans to take up a controlling stake in it. ICICI has a 17 per cent stake in Bilt Graphic Papers Ltd. The company has been valued at around Rs 320 crore.
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While LMT holds a 32 per cent stake in Bilt, the West Asia-based Al Murjan family owns 14 per cent shares, financial institutions 36 per cent and the remaining shareholding is with the public. Bilt is the largest paper producer in the country.
Bilt Graphic Papers Ltd is being brought under the Bilt umbrella in an attempt to share the gains of the acquisition with Bilt shareholders and bring more transparency in the affairs of the company. Bilt Graphic Papers is the largest producer of higher-end coated paper in the country.
Bilt had declared its intent to acquire a controlling stake in Bilt Graphic Papers Ltd some months back. It could not be ascertained how much the rights issue will increase Bilt's equity capital base.