SIL, German company in pact for Uttaranchal project

Ahmedabad, Jun 27 (UNI) German company, Klinkert has bought two million shares of Shirdi Industries, SIL, a housing interior furnishing products manufacturer, which is planning to set up a manufacturing facility in Uttaranchal.

Giving details about the pact, SIL's managing director Rakesh Agrawal said the company has paid Rs 12 crores for the shares. ''The equity contribution of Klinkert would be either through cash contribution or equipment,'' he told reporters here.

SIL which is a division of the ASIS Group, is entering the capital market with an initial public offering of 65 lakh equity shares of Rs 10 each at a price band of Rs 69-78 per share. The issue opens on June 29 and closes on July 05.

The company is planning to raise Rs 50 crore with its initial public offer to part finance its facility at Uttaranchal being set up at a cost of Rs 127 crores.

The project which is likely to commence by the year-end will manufacture multiple range of products including medium density fibre board, particle board, expected to touch a total of about 10 million square metres, he said.

SIL has invested Rs 67 crores in the project and has secured Rs 56 crores as loans from two banks to complete the expansion.

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