Plastene India IPO opens for subscription

Plastene India, a manufacturer of jumbo bags and BoPP woven sacks, launched its initial public offer of 92,55,290 equity shares of face value of Rs 10 each for subscription today. It has fixed a price band at Rs 81-84 a share.

The issue comprises of employees' reservation of upto 55,290 equity shares. The company aims to raise around Rs 74.97-77.74 crore via public issue, by diluting 25.89% stake in the company. One can apply for minimum 75 equity shares and in multiples of 75 shares thereafter.

Plastene intends to expand manufacturing facilities of jumbo bags and BoPP woven sacks at its existing units at Nani Chirai in the Kutch district of Gujarat and at Rajpur in the Mehsana district of Gujarat. The company also intends to venture into manufacturing of new product called as block bottom valve bags used for packaging of cement, pharma food grains etc.

Equity shares are proposed to be listed on the BSE and National Stock Exchange. The issue will close on May 15, 2012.

Motilal Oswal Investment Advisors Pvt Ltd is the book running lead manager to the issue.