RDB Rasayans Limited, an ISO 9001:2008 certified organisation, engaged in the manufacturing of packaging material such as PP Tape, PP woven sacks, Woven fabrics, Industrial woven fabric, PP woven fabrics and PP woven bags, proposes to enter the capital markets on 21st September 2011 with a public issue of 45,00,000 Equity shares of Rs 10 each through 100% book building process. The Issue closes on 23rd September 2011. The Price Band has been fixed at Rs 72 to Rs 79 per equity share of Rs 10 each. The Issue would constitute 25.40% of the fully diluted post issue paid up capital of the Company. Chartered Capital And Investment Limited is the sole Book Running Lead Manager for the Issue. The Issue has been graded by Brickwork Ratings India Pvt Ltd as 'BWR IPO Grade 2’ indicating 'Below Average Fundamentals’. The equity shares are proposed to be listed on the Bombay Stock Exchange (BSE).
RDB Rasayans Ltd proposes to utilise the net proceeds of the Issue to finance the capital expenditure to enhance the production facilities of the Company alongwith meeting general corporate purposes. Presently the Company is having a production capacity of 7000 MT and proposes to enhance its production capacities to 13500 MTPA by establishing Unit-II at Haldia in West Bengal, the same location where the existing Unit-I is located. The Company’s total restated sales for the year ended 31st March 2011 was Rs 45.54 crore and restated net profit at Rs 1.80 crore.
With increase of demand of the FIBC, the company is proposing to expand the capacity further by setting up another unit (Unit-II) specially for Jumbo Bag Liners with a capacity of about 7450 MTPA (950 MTPA already installed ) including Lamination and Multifilament unit taking total manufacturing capacity to 13500 MTPA. The funds deployed towards the object of this Issue as on July 20, 2011 as certified by the statutory auditors of the Company is Rs 516.68 lacs, comprising of Rs 476.68 lacs sourced from internal accruals and Rs 40 lacs by way of term loan from Axis Bank.
There is a growing demand for PP fabric for packing for different products in the fertilisers, cement, polymers, chemicals, textiles, machinery, automobiles and steel industry etc. The Company is engaged in manufacture and sale of FIBC (Jumbo Bags) and Woven Sacks and various woven polymer based products like Container Liners, Protective irrigation system, Canal Liners, etc. The Company has a track record of business in the field of woven sacks and Flexible Intermediate Bulk Container (FIBC) container liners, Canal Liners, Protective Irrigation Systems, which find large scale application in the segments like cement and fertiliser.