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Jayanta Mallick

Kolkata, Aug. 1 The West Coast Paper Mills Ltd has planned private placement of equities to a few overseas investors. Mr S.K. Banur, CMD, told Business Line that the placement was likely to be made some time in October.

Through the placements, the company intends to raise Rs 150 crore without taking premium into consideration. It is now in negotiations with some investors regarding the premium. According to merchant banking sources, the placement price could carry at least 10 per cent mark up on the current market price.

The company would also allot 5 crore convertible warrants to the promoter group. It has fixed the price of warrants at Rs 425 each convertible into one equity share of Rs 10 each.

Mr Bangur said shareholders approval would be sought for the issues and a stock split at an EGM on August 25. The sources said that both the equity placement and issue of warrants are being considered in terms of current face value of shares of Rs 10 each.

But at the time of conversion (after 18 months from the issue), and equity placements, the shares would be proportionately allotted as Rs 2 share each.

Promoters holding in this S.K. Bangur group outfit stood at 54.07 per cent of the current paid up equity of Rs 8.94 crore. Among the non-promoters are Kolkata-based CD Equifinance and its promoter Mr C.V. Desai holding 6.8 per cent and 2.62 per cent, respectively. GIC and NIC’s combined holding is around 4 per cent. In July, the company has commissioned an 80 tph coal fired boiler to increase production.

This BSE Small Cap Index stock is currently trading at Rs 426.50.

More Stories on : Foreign Institutional Investors | Private Placement | Paper | rd & Newsprint

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