Aeneas Portfolio picks up 13.81% stake in Greenply

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Greenply Industries Ltd, India’s leading interior infrastructure company, has announced New York-based Aeneas Portfolio Company LP, a prominent Foreign Investor, has picked up a 13.81% stake on diluted basis in the company through a preferential allotment.

This development has taken the overall Foreign investment in Greenply to 20.28% on diluted basis. Earlier, FIIs including BSMA Limited, Goldman Sachs Investments (Mauritius)I. Limited), Deutsche Securities Mauritius Ltd and others had picked up 8.19 % stake in Greenply.

The company also plans to issue another 6,70,000 equity shares to its promoters, also on a preferential basis. The promoters will also be issued another 5,45,000 convertible warrants which will have an option to subscribe upto 5,45,000 equity shares of Rs. 5 each.

The deal assumes significance on two counts. First, Aeneas is taking a long-term view on Greenply since shares allotted through preferential allotment have a lock-in period of one year. Second, as Mr Saurabh Mittal, joint managing director, Greenply Industries, points out, “This is a landmark achievement for Greenply as a leading foreign investor has made a significant investments with us. What’s more, the deal, which is one of the first of its kind in the domestic plywood-laminates sector, has come in at a time when a few foreign funds are selling on the bourses. The investment underlines the fact that FIIs & foreign investors continue to be bullish on India and select Indian stocks.”

“We are expanding exponentially and such show of faith by FIIs & foreign investor will commit us to reach for greater excellence,” he added.

The Greenply board has already approved preferential alloment of 23,47,000 equity shares of Rs 5/- each at a price of Rs 114/- to Aeneas Portfolio Company LP. Aeneas has invested Rs 26.76 crore in the company.

Greenply accounts for 24 per cent of its organized plywood and 14 per cent of its organized laminate market.

The company recently announced that its Pant Nagar plant in Uttaranchal has started production. The plant, which was commissioned more than three months ahead of schedule, has been set up at a cost of Rs 80 crore. It will manufacture two main product lines of plywood and particle boards.

The plant has the capacity of producing almost 7.5 million Sq meter. of plywood per annum, while the particle board production line – to be completed by July – will have a capacity of 2 million of square meters. This will take the company’s total capacity of plywood to 18 million of square meters and particleboard capacity to 2 million square meters.

Sourced From : Adfactors Public Relations Pvt Ltd