Ruchira Papers' IPO price band b/w Rs 21-23

Mumbai, Nov 15: Ruchira Papers Ltd, a leading Kraft paper manufacturing company has fixed the price band of its initial public offer between Rs 21 to Rs 23 for an equity share of Rs 10 each aggregating to Rs 28.50 crore.

Addressing the media here today, Director Jatinder Singh said the proceeds of the IPO will be deployed to part finance its expansion including setting up of a new manufacturing plant with 33,000 tpa (tonnes per annum) capacity for manufacture of writing and printing paper at Kala-Amb in Himachal Pradesh.

Replying to a question, Mr Singh said Ruchira would be amongst the top 15 paper mills in the organized sector in the country. ''It would be significant step after the expansion for Ruchira to carve a niche in the domestic market,'' he said adding that after the expansion, the total capacity of the company would increase to 85,800 tpa from 52,800 tpa at present.

The project has been appraised by Punjab National Bank (PNB), who will also be the monitoring agency, the post issue. PNB is also the book-running lead manager for the issue along with A K Capital Services.

The issue, which will open on November 23 and close on November 29 , comprises of promoters contribution aggregating to Rs 5 crore and the net offer to the public aggregating to Rs 23.5 crore.

UNI