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Cosmo Films, one of India’s largest maker of BOPP films, most widely used flexible packaging films in the world, will raise more than ₹150 crore via qualified institutional placement and issue of hybrid instruments, two sources told BusinessLine .
The hybrid structure will be consisting of convertible bonds and equity. The institutional placement is being done at a time when most countries globally are banning the use of plastic in the packaging industry, which could benefit manufacturers of synthetic papers.
Cosmo Films is India’s only company to manufacture synthetic paper and has a sizeable market share in the global trade. The Indian market for synthetic paper is estimated to be about $80-100 million and has seen double-digit growth in the last few years.
Globally, the synthetic paper market is estimated at $5 billion.
“Cosmo Films fund-raising could see an innovative hybrid instrument that could be a mix of convertible bonds and equity,” an investment banker involved with the deal said.
For FY18, the topline of Cosmo Films was ₹1,458 crore and profit₹112 crore. It has already achieved a topline of ₹1,370 crore with profit of ₹56 crore for the nine months ending December 31, 2017, data show.
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