BILT paper plans $330 mn London IPO

BILT Paper Plc plans to raise at least USD 330 million from a London listing to fund its expansion and pay down debt.

BILT Paper, a unit of India's largest paper maker Ballarpur Industries, has increased its paper production capacity by nearly 90 percent over the last two years and plans to grow it by another 50 percent by the end of 2014.

"Indian paper demand is expected to increase significantly throughout the next decade," BILT Chairman RR Vederah said in a statement. "The proceeds from the listing will help us to meet this growth in demand."

Ballarpur owns a 79.5% stake in the firm, part of the Mumbai-based Avantha group, with the rest held by private equity investors JP Morgan Mauritius and Lathe investment.

BILT, which is expecting to be eligible for inclusion in the FTSE 250 index, said it would raise USD 330 million from the sale of new shares, while the private equity investors may also sell some secondary shares in the offering.

Ballarpur's finance chief told Reuters in January that the group was targeting USD 300 million to USD 400 million from a London listing of the unit.

Citigroup and JP Morgan are joint global coordinators and joint bookrunners of the initial public offering.