Flexible intermediate bulk container (FIBC) maker Plastene India Ltd has said it is entering the capital market with a public issue of 92.55 lakh equity shares through a 100% book building route on May 9.
The shares will be of face value of Rs 10 each for cash in the price band of Rs 81 to Rs 84. The proposed issue will open for subscription on May 9 and close on May 15.
The Rs 500-crore turnover company based in Ahmedabad is engaged in the integrated business of manufacturing FIBCs (jumbo bags), flexible packaging, BoPP laminated woven sacks and multi-filament yarns.
The manufacturing facilities of the company are located in Kutch and Mehsana district in Gujarat, with a total installed capacity of 56,200 MTPA as on March 31, 2012, a company statement said here.
To meet the growing demand of jumbo bags and BoPP laminated woven sacks, Plastene India is expanding its manufacturing capacity to 64,000 MTPA at an approximate cost of Rs 53 crore.
It is also setting up a new venture to manufacture 5,000 MTPA block bottom valve bags in Nani Chirai, Kutch at an approximate cost of Rs 25 crore. Block bottom valve bag is a new packaging product used for packing cement, food grain, cereals, etc, which enhances the brand value of the company, it said.
The equity shares of the company are proposed to be listed both on BSE and NSE.