Plastene India Ltd., a Rs. 500 crore turnover company based in Ahmedabad and Gandhidham, Gujarat, is entering the capital market with a public issue of 92,55,290 Equity Shares of Face Value of Rs.10 each for cash in the Price Band of Rs.81 to Rs.84 per Equity Share through a 100% book building route. The issue comprises of reservation of upto 55,290 Equity Shares for subscription by eligible employees and a net issue to the public of upto 92,00,000 Equity Shares.
The issue would constitute 25.89% of the fully diluted post issue paid-up capital and the net issue would constitute 25.74% of the fully diluted post issue paid-up capital of the company. The proposed issue shall open for subscription on 9th May, 2012 and close on 15th May, 2012.
Plastene India Limited, promoted by Mr. Champalal G. Parekh, Mr. Prakash Parekh and Mrs. Madhu P. Parekh, is presently engaged in the integrated business of manufacturing flexible intermediate bulk containers (jumbo bags), flexible packaging, BoPP laminated woven sacks, masterbatches, multifilament yarns, etc. The manufacturing facilities of the company are located in Kutch and Mehsana district in the state of Gujarat, with a total installed capacity of 56,200 MTPA as on March 31, 2012.
Plastene India has a track record of consistent growth registering a CAGR of more than 45% in net sales on a consolidated basis from Rs. 75 crores in FY 2006 to Rs. 484 crores in FY 2011. The company derives approximately 49% of its revenues from the exports to more than 30 countries.
To meet the growing demand of Jumbo Bags and BoPP laminated woven sacks, Plastene India is expanding its manufacturing capacity to 64,000 MTPA at an approximate cost of Rs. 53 crores. 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. 25 crores. 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 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 expanding its 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.