Manjushree enters capital mkt with Rights-cum-Public issue

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Manjushree enters capital mkt with Rights-cum-Public issue

This article was posted on Jan 22, 2008 and is filed under Press Releases

Manjushree Extrusions Limited (Manjushree) is entering the capital market with a Rights–cum–Follow on Public Offer of Equity Shares aggregating to Rs. 35.70 crores. The Rights Issue has already opened on 7th January 2008, while the Follow on Public Offer will open on 31st January 2008 and both the issues will simultaneously close on 6th February 2008.

The Rights Issue comprises of 42,10,800 Equity Shares of Rs.10 each for cash at a premium of Rs. 20 per share aggregating to Rs. 12.63 crores offered to the existing equity shareholders of the Company, in the ratio of one equity share for every one equity share as held on 24th December 2007 (the record date). The Follow on Public Offer will comprise of 51,26,100 Equity Shares of Rs.10 each for cash at a premium of Rs. 35 per share aggregating to Rs. 23.07 crores.

The fund being raised through the composite issue is proposed to be utilized to part finance the Company’s expansion cum diversification project at a cost of Rs. 53.70 crores, which is presently under implementation. A term loan of Rs. 18 crores has been sanctioned by SBI for the project.

Manjushree provides packaging solutions through manufacture of Speciality Plastic Packaging products for multinational companies with whom the Company enjoys a preferred supplier status, in FMCG, Pharma, Food Processing and Agrochemical sectors through an ongoing process of research oriented design and development. The products include injection/Blow molded PET/PP and Multilayer plastic containers, which are being manufactured by employing Japanese and European technologies. The major clients of the company include Hindustan Unilever, Nestle, Cadbury, Britannia, Glaxo SmithKline, P&G, Coca Cola, Tata Tea, Godrej, Wrigley’s, Hershey’s, Heinz, Pepsi, UB Group, Henkel etc. besides export to customers in South Africa and Middle East countries.

Manjushree registered a turnover of Rs.80 crores for FY 2007 recording an increase of 22% over FY 2006, with a Net Profit after tax of Rs.2.82 crores and an EPS of Rs.6.70. For the 6 months ended 30th September, 2007, the company has registered a turnover of Rs. 38 crores with an operating profit before interest and depreciation of Rs. 5.40 crores, and a Net profit after tax of Rs. 1.86 crores. The EPS after exceptional items for the 6 months period ended 30th September, 2007 stood at Rs. 4.42.

Manjushree is currently listed on Ahmedabad, Calcutta, and Gauhati Stock Exchanges and now proposes to list the existing shares as well as the shares under the Issue on Bombay Stock Exchange as well, which is the Designated Stock Exchange.

Centrum Capital Ltd., Mumbai are the Lead Managers to the Issue.

Sourced From: Pressman India

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