Packaging material manufacturer RDB Rasayans has fixed the issue price at higher end of price band of Rs 72-79 a share. The company raised Rs 35.55 crore through the IPO of 45 lakh equity shares, by diluting 25.40% stake.
The issue, which opened during September 21-23, was subscribed 1.5 times, as per data available on NSE website.
The company is engaged in the manufacturing of packaging material such as PP Tape, PP woven sacks, woven fabrics, industrial woven fabric, PP woven fabrics and PP woven bags.
RDB Rasayans proposes to utilize the net proceeds of the Issue to finance the capital expenditure to enhance the production facilities of the Company alongwith meeting general corporate purposes.
Presently the company is having a production capacity of 7000 MT and proposes to enhance its production capacities to 13500 MTPA by establishing Unit-II at Haldia in West Bengal, the same location where the existing Unit-I is located.
With increase of demand of the FIBC, the company is proposing to expand the capacity further by setting up another unit (Unit-II) specially for Jumbo Bag Liners with a capacity of about 7450 MTPA (950 MTPA already installed ) including Lamination and Multifilament unit taking total manufacturing capacity to 13500 MTPA. The funds deployed towards the object of this Issue as on July 20, 2011 as certified by the statutory auditors of the Company is Rs 516.68 lacs, comprising of Rs 476.68 lacs sourced from internal accruals and Rs 40 lacs by way of term loan from Axis Bank.
