The Hindu Business Line : Ess Dee Aluminium to hit market to fund expansion

Ess Dee Aluminium Ltd, manufacturer of aluminium foils and packaging material for pharma and FMCG industry, is planning to increase its aluminium rolling capacity from the present 9,100 tonnes per annum (tpa) to 18,000 tpa by June 2007. Earlier this year, the company had completed it expansion of its rolling capacity from 3,600 tpa to 9,100 tpa.

The company is expanding its manufacturing facilities in Goa and Daman at an investment of about Rs 115 crore. The total investment, including for upgrading existing units, would be about Rs 160-170 crore. The company is also expanding its capacity of PVC (polyvinyl chloride) products from 4,200 tonnes at present to 5,800 tonnes.

The company is entering the capital market with its maiden public issue and is likely to hit the market sometimes in early November, the company Chairman & Managing Director, Mr Sudip Dutta, said. The company would offer 69.60 lakh shares at a face value of Rs 10 each at a premium through the book-building route.

The company had recently raised Rs 21 crore through a private placement of 10 per cent pre-IPO equity stake to high net-worh individuals. Post-IPO, the stake of promoters would come down from about 87 per cent at present to 65 per cent.

According to Mr Dutta, apart from raising funds the other main reason for going public is to gain more credibility.

"We are working with international clients and globally listed companies are preferred. They say that your company balance sheet should be on the net and we are now getting listed," Mr Dutta said.

The company, which has among its clients drug majors such as Pfizer, Cipla, Wockhardt, Cadilla, Ranbaxy and FMCG companies such as Britannia, posted a turnover of Rs 62.46 crore and a net profit of Rs 9.78 crore in 2005-06.

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Ess Dee Aluminium to hit market to fund expansion