Paramount Printpackaging today said it plans to raise up to Rs 40 crore from its initial public offer (IPO) scheduled to open on April 20.
The price band for the issue, which closes on April 25, has been fixed at Rs 32-35 per equity share. The issue will constitute 49.04 per cnent of the fully diluted post issue paid up capital of the company.
"The company is entering the capital market on April 20, with a public issue of 1.3 crore equity shares of Rs 10 each. The issue closes on Apri 25 and shares will be listed on NSE and BSE," Paramount Printpackaging Chairman and Managing Director Divyesh Sukhadia told reporters here.
The company plans to use proceeds to set up a new facility for manufacturing high-end duplex board cartons, shippers and printed corrugated box in Gujarat as well as augment the company's long term working capital requirements.
"We will invest around Rs 5 crore for setting up a new facility in Gujarat. The facility will be ready by this year-end," he said, adding, a part of the proceeds will be used for purchasing manufacturing equipment.
Onelife Capital Advisors is the book running lead manager to the issue.
Paramount Printpackaging caters to over 100 clients in various sectors such as FMCG, pharma, electricals, auto ancillary, food and beverages.
Currently, the company has the capacity to convert about 500 tonnes of paper board every month, which in terms of finished products works out to an average of 20 lakh cartons a day. The company has a fully automated manufacturing facility at Navi Mumbai.
