Mumbai-based Paramount Printpackaging Ltd (PPL) plans to expand its manufacturing capacity by setting up new facility at Vapi in Gujarat using the proceeds of its forthcoming initial public offer (IPO). The company has identified the land for the plant which is likely to become operational by the end of fiscal year 2011-12. The comapny has envisaged investment of Rs. 31.94 crore in this project.
“We plan to use major portion of the proceeds from our IPO for setting up manufacturing facility with capacity of manufacturing 15 lakhhigh-end duplex board cartons per day, five tonnes shippers per day and seven lakh tonnes printed corrugated cartons per dayat Vapi in Gujarat,” PPL CMD Divyesh Sukhadia told reporters in Mumbai today.
Company has existing manufacturing facility in Navi Mumbai. The company plans to raise up to Rs 45 crore from its IPO scheduled to open on April 20. The price band for the issue, which closes on April 25, has been fixed at Rs 32-35 per equity share. The issue will constitute 49.04 per cent of the fully diluted post issue paid up capital of the company.