Shirdi Industries to set up Rs 127 cr particle unit at Uttaranchal

Mumbai, June 26 (UNI) Shirdi Industries Ltd (SIL) will set up manufacturing facility of particle boards at a cost of Rs 127.41 crore in Uttaranchal as a backward integration project.

Briefing newsmen here today, its Managing Director Rakesh Kumar Agarwal said the project has been given mega status by State of Uttaranchal and is appraised by Union Bank and UCO Bank, who together have santioned a term loan of Rs 56.5 crore.

To finance the remaining portion of the project, Mr Agarwal said the company is entering the capital market with an initial public offering (IPO) issuing 65 lakh equity shares of Rs 10 each through Book Building route. The price band for the issue has been fixed between Rs 69 and Rs 78. The bid issue opens on June 29, 2006 and closes on July 5, 2006.

Post-IPO, promoters will hold 65.38 per cent of the company's equity and 8.55 per cent equity will be held by supplier of equipments.

The equity shares of the company will be listed on both BSE and NSE.

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