Ess Dee to raise Rs 156 crore to fund operations

New Delhi, Nov 29 (UNI) Ess Dee Aluminium Ltd (EDAL), an end-to-end pharma packaging solutions provider, today said it will enter the capital market on December 4 to raise Rs 156 crore for increasing its aluminium foil rolling capacity from 3,600 MTPA to 18,000 MTPA by mid-next year.

''We have drawn up plans to set up a new unit III at Daman for manufacture of aluminium foil-based packaging products to enhance product portfolio and expand the industry reach,'' company's President (Finance and Business) Ajay Doshi told reporters here.

The new expansion project at Daman is estimated to involve a capital outlay of Rs 114.79 crore, which is to be funded from the proceeds of the IPO, internal accurals and funds raised through issue of equity shares.

The company is engaged in the business of cold rolling of aluminium 'foil stock' to aluminium foil, which is further converted into 'printers stock' through the process of lamination for strip pack or coating for blister pack at its six different plants situated at Goa, Daman, Baddi and Vasai.

''We are eyeing growth opportunities in Aluminium foil-based pharmaceutical, FMCG and food packaging businesses too,'' Mr Doshi added.

The company will offer an issue of 69,60,000 equity shares of Rs 10 each for cash at a premium to be decided through a 100 per cent book building process.

The net issue to public will constitute 25.79 per cent of the post issue fully diluted equity capital.

The price band for the issue has been fixed at Rs 200 and Rs 225 closes on December 8.

EDAL's wholly-owned subsidairy, Flex Art Foil Pvt Ltd is engaged in subsequent conversion of 'printers stock' to customised size and printing of proprietary designs. It provides end-to-end packaging solutions to the pharmaceutical manufacturing labs.

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