Newsprint maker Rama Paper Mills Ltd today said it will raise Rs 200 crore for setting up a power plant through preferential placement of shares to qualified institutional buyers (QIBs).
"It has been decided to raise funds to implement the power project by way of preferential allotment to QIBs and to other investors," Rama Paper Mills said in a filing to Bombay Stock Exchange.
The company will set up a 50 MW power plant in different phases by investing Rs 200 crore. It has already started placing orders for the necessary equipment.
The company is at present getting power from the Power Grid at Rs 6.50 per unit. Upon completion of this project, the company will be able to get power at around Rs 3 per unit for its captive consumption, it added.
