Malu Paper Mills IPO priced at Rs30. Issue Opens on 06 March 2006.
Friday, 03 March , 2006,

Malu Paper Mills Ltd, based in Nagpur announced its maiden IPO for 66,67,000 Equity shares of Rs. 10 each at a premium of Rs. 20 per share. The issue, aggregating Rs200mn opens on March 6 2006 and closes on March 10, 2006.
The Issue price of Rs30 per share is three times the face value. The promoters have also participated in the issue at the issue price of Rs.30 to the extent of 16,67,000 Equity shares and the above issue is excluding the promoters contribution. There is a reservation of 5,00,000 Equity Shares for NRIs and FIIs on proportionate basis and 5,00,000 Equity shares for Indian Mutual Funds, Indian Multilateral and development financial institutions and scheduled commercial banks on a proportionate basis.
Net offer to the public constitutes of 56,67,000 Equity shares wherein a minimum of 50% will be provided for retail individual investors and maximum of 50% for other category of investors.
The proceeds will be utilized to part finance setting up of a new unit at Nagpur to produce 49,500 TPA (150 TPD) of Newsprint and Writing & Printing paper along with 6 MW captive Co-generation Power Plant. The total investment for this project is estimated at Rs700mn. The Company has raised Rs450mn through term loans from banks to fund the project.
The project is appraised and monitored by the UTI Bank Ltd. The new project is being set up at Nagpur, Maharashtra. The company will manufacture Premium Quality Newsprint by recycling waste paper with the new generation deinking method. The company has already placed orders for a state of art deinking plant from Andritz OY, Finland, Paper Machine, Boiler and Turbine for the 6 MW power plant for the new project. The total capacity of Newsprint and Kraft paper after the proposed expansion shall be 77550 TPA.
The revenues of the company has shown a steady growth and the company achieved a turnover of Rs406.72mn for nine month ended 31st December’05 as against Rs.489.80mn for the year ended March 31 ‘ 05. The company reported a PAT of Rs25.93mn for the 9 month period ended 31st December ‘05 as against Rs26.46mn for the 12 months ended 31st Mar ‘05
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