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Ess Dee Aluminium entering capital market with IPO of 69.60 lakh equity shares

Our Bureau, MumbaiTuesday, August 22, 2006, 08:00 Hrs  [IST]

Ess Dee Aluminium Ltd, a leading pharmaceutical packaging solutions provider, is entering the capital market with an initial public issue of 69.60 lakh equity shares of Rs 10 each for cash at a premium to be decided through a 100 per cent book-built process. The company filed its draft red herring prospectus with SEBI. Of this total IPO, 1.50 lakh equity shares are reserved for allotment to eligible employees. The offer to public will constitute 25.79 per cent of the post issue fully diluted equity. The company proposes to reserve 50 per cent for allotment to qualified institutional bidders and of this 5 per cent will be allotted to mutual funds. Of the balance, 15 per cent is to be reserved for allotment to non-institutional bidders and the balance 35 per cent is being reserved for allotment to retail investors on a proportionate basis. Sudip Datta, chairman and managing director of the company, said, "The company currently operates two units one in Daman and another in Goa and our wholly owned subsidiary operates four aluminium foil printing units. Further, we proposes to set up a new unit - Init III at Daman for the manufacture of aluminium foil based packaging products to enhance our product portfolio and industry reach." "The IPO is an important milestone in realizing our larger corporate vision. It would help strengthen EDAL's position in the Pharmaceutical packaging business and tap future growth opportunities in aluminium foil based pharmaceutical, FMCG and food packaging business." The Book Running Lead Managers to the issue are UTI Securities Ltd and Enam Financial Consultants Pvt Ltd.

 
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