AMD Metplast issue gets CARE IPO Grade 3 rating

Mumbai, Feb 08 (UNI) AMD Metplast, a complete packaging solution provider for the beverage industry, has fixed the price band for its initial public offering (IPO) between Rs 65 to 75 per share.

Announcing this at a media interaction here today, its Managing Director Ashok Gupta said the IPO envisages issue of 1,01,66,700 equity shares of Rs 10 each. The rating agency CARE has assigned ''CARE IPO Grade 3'' to the IPO of the company indicating the average fundamentals of the latter.

Mr Gupta said ''AMD Metplast is the first company which has assigned IPO Grade 3, the highest IPO Grade assigned to any Company by any rating agency, to hit the capital market till date in recent times.'' The net proceeds of the IPO will be used to meet the capital expenditure of Rs 22.58 crore for setting up new PET preforms line line at the existing plant in Neemrana, Rajasthan, he said.

It has three more plants for producing crown caps, CSD (carbonate sensitive detox) closures and PET Preforms at Ghaziabad.

The funds will also be used to partfinance long term working capital requirements needs aggregating to Rs 20 crore and repayment of debt to the tune of Rs 12 crore. Replying to a question, Mr Gupta said a major part of the capital expenditure relates to installation of plant and machinery at Rs 16.82 crore.

UNI