Archidply IPO opens June 11 at price band of Rs 70-80

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New Delhi, June 9 (UNI) Archidply Industries Ltd today said it will hit the capital market with its Initial Public Offering (IPO) of 66,15,720 equity shares to raise about Rs 52.9 crores for its expansion plans.

The IPO will be for 66,15,720 equity shares of Rs 10 each for cash at a price band of Rs 70 to Rs 80, the company said in a statement.

The issue will constitute 30.07 per cent of the fully diluted post issue paid up equity share capital of the company.

The face value of equity shares of Rs 10 and the floor price is seven times of the face value at the lower end of the price band and eight times at the upper end of the price band.

The 100 per cent book building issue will open on June 11 and closes on Tuesday June 17, it added.

The proceeds from IPO will be used to set up a manufacturing facilities of plain particle board (PPB), pre-laminated board (PLB) and decorative plywood at Chintamani in Karnataka and a medium density fibreboard (MDF) plant at Rudrapur in Uttarakhand.

The Book Running lead manager to the issue is Motilal Oswal Investment Advisors Private Ltd.

The company's net profit stood at Rs 14.98 crore during FY08 as against Rs 5.24 crore during FY07, while total income for FY08 stood at Rs 142.82 crores compared to Rs 100.62 crore during FY07.

The company manufactures plywood, comprehensive engineered interior products which include plywood, block board, plain and pre-laminated particle board, decorative laminates and decorative veneers.

UNI SR SG CS1735

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