"We are setting up two new manufacturing facilities in Karnataka and Uttarakhand at an investment of Rs 36 crore and Rs 26 crore respectively," company's Joint Managing Director Shyam Daga told reporters here today.
The Karnataka unit at Chintamani would manufacture plain particle board (PPB), pre-laminated board (PLB) and decorative plywood, he said.
"Archidply is entering into manufacturing of medium density fibreboard (MDF) segment and our new facility at Rudrapur in Uttarakhand will manufacture it," he said.
The decorative plywood plant at Chintamani would begin its operations by September, while the plain particle board and medium density fibreboard plants would start by August 2009, he said.
To fund its expansion, the company is coming out with its initial public offering (IPO), intending to raise Rs 52.9 crore.
The company also intends to use term loans and internal accruals to fund the project. The IPO would have 66,15,720 equity shares with a face value of Rs 10 per share.
The price band of the IPO has been fixed between Rs 70-80. The IPO is scheduled to open on June 11 and close on June 17.
The lead managers to the issue is Motilal Oswal Investment Advisors.
