Speciality Papers to buy 3 firms for Rs 328cr

Speciality Papers is set to acquire three companies of similar business to strengthen its presence in speciality paper business.

The company has decided to buy Reliable Paper (India) at Rs 265 crore while the acquisition of Prime Industries and Opel Paper Mill will cost it Rs 53 crore and Rs 10 crore, respectively.

The present production capacity of Speciality Paper is 27 metric tonne per day and the annual turnover is Rs 45 crore. After these acquisitions, the production capacity of the company is expected to increase to 100 metric tonne per day and the annual turnover at Rs 350 crore, said CMD Mekan Gala.

With the above M&A activity taking place, the company is going to emerge as one of the leading players in the paper industry.

The Speciality Paper is planning to raise Rs 100 crore through QIB
placement for future expansion and for acquisition of more companies.

Meanwhile, the company has appointed Firstcall India Equity Advisors as the strategic M&A and Financial Advisors for acquiring companies in the paper industry.