Paper manufacturer Genus Paper Products plans to tap the capital market for raising up to Rs 60 crore through an initial public offer and has filed draft papers with the Sebi for the same.
The company intends to raise funds to meet its expansion plans and for general corporates purpose.
The Uttar Pradesh-based company is planning to expand its paper manufacturing capacity from 140 TPD to 325 TPD at an estimated cost of Rs 41 crore, as per the draft red herring prospectus (DRHP) filed with the market regulator Securities and Exchange Board of India.
The company is also considering a pre-IPO placement of equity shares with certain investors, according to the DRHP.
The manufacturing plant of Genus Paper is situated at Moradabad in Uttar Pradesh.
Shares offered through the IPO are proposed to be listed on the National Stock Exchange and the Bombay Stock Exchange. The issue is based on a 100 per cent book building process.
The firm manufactures industrial paper of various grades of kraft paper and particle board. Kraft paper is a type of industrial paper and used by packaging industry for making the corrugated boxes and composite containers. Particle board is mainly used for room partition, photo lamination and others.
Mefcom Capital Markets and Emkay Global Financial Services are the book running lead managers to the issue.
Buoyed by a handsome rise in the stock market last year, a number of companies have lined-up for hitting the capital market through their public offers.
As many as 44 companies, including state-run undertakings, came out with public offers during the financial year 2009-10 and raised funds over Rs 47,800 crore.
During the just passed fiscal (FY10), the stock market benchmark Sensex gave a whopping return of over 80 per cent.