IFC Washington to infuse Rs 120 crore into JK Paper Ltd

Mumbai, Mar 8 (UNI) To garner funds to fuel its growth and modernisation plans, JK Paper Limited has inked a pact with International Finance Corporation (IFC), Washington, under which JK Paper will allot equity shares amounting to Rs 50 crore at a price of Rs 65 per share.

IFC will further provide a ten-year term loan of Rs 70 crore while the promoter group will also subscribe to equity shares worth Rs 50 crore at the same price of Rs 65 per share, a company release said.

The company's growth and modernisation programme involves an outlay of Rs 335 crore comprising a 60,000 tpa multi-layer packaging board project being set up at its existing site in Gujarat as well as the installation of new high-pressure boiler and turbine for enhancing power generation.

On completion of its project, JK Paper's annual output will stand enhanced to 240,000 tpa and it will only be the second company in the country to produce such boards.

UNI JJ KD AW1723