City-based Astron Paper and Board Mill Limited looks to hit the capital markets through initial public offering of up to 1,40,00,000 equity shares of face value of Rs 10 each to raise up to Rs 70 crore. The company has fixed the price band of Rs 45 to Rs 50 per Equity Share.
The company, engaged in manufacturing of craft paper, plans to utilise the net proceeds from the IPO, which will be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), towards setting up of additional facility for manufacturing of Kraft Paper with lower GSM ranging from 80 to 180 GSM and lower Burst Factor ranging from 12 B.F to 20 B.F. Also the company plans to part repay unsecured loan and provide funding for the working capital requirements besides the general corporate purposes.
"We have the existing manufacturing capacity of 96,000 tonnes per annum at our plant in Halvad. The expansion will increase the product basket for us. With the new addition of additional range of products, we will be able to provide a complete range of craft papers to our clients," said Kirit G Patel, Chairman and Managing Director of the company.
Astron Paper registered turnover of RS 184 crore for the year 2016-17, up 20 per cent from the previous year. The net profit for the year stood at Rs 9.95 crore.
The issue opens on December 15, 2017 and closes on December 20. The issue also comprises of reservation of up to 7,00,000 equity shares for subscription by Eligible Employees.
The Issue is being made through the Book Building Process, wherein 10% of the Net Issue will be allocated on a proportionate basis to Qualified Institutional Buyers (QIBs). Further, 5% of the QIB Category shall be available for allocation on a proportionate basis to Mutual Funds only and the remainder shall be available for allocation on a proportionate basis to QIBs including Mutual Funds, subject to valid Bids being received from them at or above the Issue Price.
Pantomath Capital Advisors Private Limited is the Book Running Lead Manager to the Issue. The Registrar to the Issue is Link Intime India Private Limited.