To part finance its Rs.235 crore
expansion plan, JK Paper plans to raise $17 million (Rs.75 crore) through an
overseas issue of GDRs and FCCBs. The plan includes setting up of a 60,000 tpa multi-layer
packaging board plant at Surat in Gujarat, and some modernisation projects.
With this borrowing programme, the
company has moved closer to attaining financial closure for the project.
The
company has already entered into an agreement with Washington-based
International Finance Corporation (IFC) to allot 10 per cent of its equity
shares worth Rs.50 crore. Promoters and internal accruals will bring in another Rs.50 crore each towards this expansion.
Also See:
JK
Papers plans Rs.700 crore capex (09-Mar-06)