New Delhi, Dec 29 (UNI) In order to tap the 15,000 MT market for flexible packaging, Cosmo Films Limited, the leading manufacturer of Bi-axially Oriented Polypropylene Films (BOPP) and Thermal Lamination film today said it will raise Rs 33.17 crores through the issue of 31 lakhs fully convertible warrants to the promoters on a preferential basis.
The Cosmo board has approved the issue of these warrants, which will, subject to the approval of shareholders, be converted into equity shares within 18 months.
The company plans to use the proceeds of the preferential issue for financing the expansion in terms of capital investments and long-term working capital requirements.
''We are bullish about the market opportunity in both domestic and export markets as shown by our aggressive expansion plans. The proceeds of the preferential issue would enable us to fund our capacity enhancement,'' founder and Chairman of Cosmo Films, Ashok Jaipuria said.
The company is associated with the leading FMCG Brands for providing cost-effective innovative packaging solutions to enhance their value. The present capacity of the company is 18000 TPA, for manufacturing Thermal Laminating film, which it plans to increase to 25000 TPA by March 2008.