Mitsu Chem Plast files draft papers with Sebi to mop up Rs 125 crore via FPO

Packaging solutions provider Mitsu Chem Plast has filed draft papers with Sebi to raise up to Rs 125 crore through a follow-on public offer (FPO). The further issue comprises ”equity shares of face value of Rs 10 each aggregating up to Rs 12,500 lakh,”, the draft red herring prospectus (DRHP) filed with Securities and Exchange Board of India (Sebi) showed.

Proceeds from the issue will be used to repay debt, fund the working capital requirements of the company and for general corporate purposes. The Maharashtra-based company posted a profit after tax of Rs 11.5 crore and a total income of Rs 259 crore for the fiscal ended March 31, 2022.

Mitsu Chem Plast is a packaging solutions provider engaged in the business of manufacturing polymer-based molded products mainly used for industrial packaging for industries like chemicals, agrochemicals, pharmaceuticals, lubricants, food and edible oil.

It has three manufacturing units in Maharashtra with a total installed capacity of 22,857 MTPA (Metric Tonne Per Annum). The company’s scrip was trading at Rs 270, up 0.47 per cent on the BSE in the morning trade. IDBI Capital Markets & Securities Ltd is the sole book running lead manager to the issue.