Ruchira Papers set to enter capital market

New Delhi, Oct 23 (UNI) Ruchira Papers Ltd, a leading Kraft paper manufacturing company, is set to enter the capital market with an initial public offer of Rs 28.5 crore to partly finance its expansion plans.

The company plans to set up a new manufacturing plant with 33,000 tonnes per annum (TPA) capacity to manufacture writing and printing paper including a chemical recovery plant and a 6 MW captive power co-generation plant, raising the total capacity to 85,800 TPA.

The plant is likely to be operational by April 2007.

The project is funded by a consortium of bankers to the extent of Rs 93.48 crore out of total cost of Rs 135.50 crore. The promoters are making a contribution of Rs 9 crore with additional funds to the extent of Rs 12 crore being raised through internal accurals.

The rest Rs 23.50 crore are being raised through the public issue, expected to open in the second week of November.

The company has received the SEBI nod for the IPO that would be made through 100 per cent book-building process.

The Punjab National Bank is the monitoring agency to oversee the utilisation of the funds, which will be raised through the public issue.

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