Fidelity buys 5% stake in Ess Dee Aluminium

New Delhi, Mar 22 (UNI) Fidelity International has taken five per cent equity in Ess Dee Aluminium, country's largest provider of pharma packaging solutions.

In an open market operation, the fund has invested around Rs 40 crore in the company's stock that pegs its enterprise value at Rs 800 crore.

''It is a reflection of the confidence that global financial institutions are showing in the company,'' Ess Dee Chiarman and Managing Director Sudip Dutta said adding other funds, including Blackstone have evinced interest to be a part of company.

The company is planning to invest 40-45 million dollars to set up a plant in Dubai and also looking to acquire a company in South Africa.

It has recently set up a plant in Sikkim, which is offering tax benefits and now, company is looking at expanding overseas.

Overseas expansion will be funded partly through internal accruals and if need be, the company may consider FCCB route, Mr Dutta said.

The comapny has already invested over Rs 100 crore in setting up a thermo forming films plant for the pharmaceutical industry in Daman.

UNI