Business Standard

Plastene India IPO likely in September

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Announcement Corporate

Plastene India Ltd. is likely to enter the capital market in September with its proposed IPO of 1,05,00,000 Equity Shares. The Company received SEBI approval for its IPO in May this year. The 100% Book Built Issue will constitute 29.37% of the post issue paid up equity capital of the company.

Plastene India is promoted by Mr. Champalal Parekh, Mr. Prakash Parekh and Ms. Madhu Parekh. The Company is engaged in the integrated business of manufacturing flexible intermediate bulk containers, woven sacks, flexible packaging, woven fabric, tarpaulin, masterbatches, fillers, granules, multifilament yarns and webbings.

The Company’s manufacturing facilities are located in Kutch and Mehsana districts of Gujarat and have a total installed capacity of 55,000 MTPA. To meet the growing demand of Jumbo Bags and BoPP woven sacks, Plastene India is expanding its manufacturing capacity to 69,000 MTPA at an approximate cost of Rs. 55 crore.

 

It is also setting up a new venture to manufacture 5,000 MTPA block bottom valve bags in Nani Chirai, Kutch at an approximate cost of Rs. 20 crore. Block bottom valve bag is a new packaging product used for packing cement, food grain, cereals, etc., which enhances the brand value of the company.

The above expansion and new venture are proposed to be funded from the net issue proceeds.

The company manufactures a broad range of packaging products for products ranging from 5 grams to 3000 kgs. Close proximity to the Kandla and Mundra ports, expanded product portfolio, diversified customer base, distributorship of Indian Oil Corporation Ltd. (IOCL), backward integration facilities, use of modern technologies, fiscal incentives and strong R&D capabilities, have helped the company in building and maintaining its strong market position.

The Equity Shares of the company are proposed to be listed on BSE and NSE. Motilal Oswal Investment Advisors Pvt. Ltd. is the Book Running Lead Manager to the Issue.

 

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First Published: Sep 02 2011 | 1:07 PM IST

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