News + Font Resize -

Ess Dee entering capital market with IPO to part finance expansion
Our Bureau, Mumbai | Wednesday, November 29, 2006, 08:00 Hrs  [IST]

Ess Dee Aluminium Ltd (EDAL), a leading pharmaceutical packaging solutions provider, is entering the capital market on December 4, 2006 with an issue of 69.60 lakh equity shares of Rs.10 each through 100 per cent book building process. The price band for the issue has been fixed between Rs 200 and Rs 225 per share.

The expansion project at Daman has estimated to involve a capital outlay of Rs 114.79 crore, which is to be funded from the proceeds of the IPO, internal accruals and funds raised through issue of equity shares. The expansion project will increase the company's aluminium foil rolling capacity from 3600 MTPA to 18,000 MTPA.

The company has reserved 1.50 lakh equity shares for allotment to eligible employees, thus the net issue to public stands reduced at 68.10 lakh equity shares. The net issue to public will constitute 25.79 per cent of the post issue fully diluted equity capital.

Sudip Datta, chairman and managing director of the company, announcing the details of its initial public issue at a press conference, said, "We have drawn up plans to set up a new unit -Unit III at Daman for the manufacture of aluminium foil based packaging products to enhance our product portfolio and extend our industry reach."

Currently, the company is engaged in the business of cold rolling of aluminium foil stock to aluminium foil, which is further converted into printers stock through the process of lamination for strip pack or coating for blister pack. The company also manufactures thermoforming poly vinyl chloride films (Rigid PVC films) as well as PVdC coated PVC barrier thermoforming films for blister packaging.

Currently, the company operates from two units one at Daman and another one at Goa. The wholly owned subsidiary Flex Art Foil Private Limited (FAFPL) has four units across the country located in proximity to the pharmaceutical manufacturing hubs, which helps the company in satisfying location specific customer requirements.

Post Your Comment

 

Enquiry Form