Jindal Poly Films' IPO

Jindal Poly Films Ltd, part of the Rs 1,500 crore B C Jindal Group, manufacturers of packaging and metallised films, plans to launch its follow-on public issue aggregating to Rs 300 crore to fund its expansion plans.

The price band for the issue will be decided by the company at least one day prior to the opening date of the issue.

In November 2003, the Jindal group acquired Rexor S A S, a French company, and gained access to a broad range of advanced metallised and coated film production technologies. This also strengthened the European distribution of the company.

DEG - one of the largest development finance institutions in Europe, holds approximately 9.5 per cent of the equity share capital.

In fiscal 2004, the company registered net sales of Rs 542 crore compared to Rs 399 crore in 2003 and exports accounted for 35 per cent of revenue in the nine month of FY05. About 61 per cent of exports are to the EU, where the company faces no anti-dumping duty.

The group's revenue from exports rose from Rs 53 crore in 2002 to Rs 103 crore in the nine months of FY05.

The company focusses on integrated packaging film solution and offers products required for large flexible packaging converters.

"The increase in packaged foods, organised retail industry and low per capita consumption are the major growth drivers for the industry," said S K Mittal, managing director, Jindal Poly Films.