Mumbai, Oct 16 (UNI) South-based paper products manufacturer SVPCL Limited will enter capital market with a public issue to raise Rs 34 crore to fund its expansion plans.
The IPO will hit the bourses on October 22 and will close by October 26. The price band has been fixed at Rs 40 to Rs 45 per equity share of Rs 10 each, BOB Capital Markets is the lead manager of the issue.
After announcing the launch of IPO here today, company CEO Y V Seshatalpa Sai said, ''Globally, the paper manufacturing industry is growing at a rapid pace and we want to be a part of that growth story.'' The net proceeds of the issue will be utilised by the company for the expansion of manufacturing facilities at Hyderabad, Vijaywada and Visakhapatnam.
The company also has plans to equip its Visakhapatnam facilities with modern processing and printing equipments to cater to international clientele looking to outsource printing services from India.
The company has also entered into an agreement with a US-based firm Spalee Inc for entering the US printing market. Spalee will source the printing jobs for the company.
The company manufactures the entire range of educational stationery like books, computer stationery, paper products and printing services. From markets like Japan and Germany, it imports 50 per cent of its paper requirements.
For the financial year 2006-07, the company posted a net profit of Rs 594.23 lakh.