West Coast Paper Mills, the SK Bangur Group company has resourced Rs 130 cr from the market to finance its ongoing project. The company has mopped up the funds through institutional placement of preference shares and debentures to IFCI and Axis Bank.
At present, the company is enhancing the production capacity of its paper and paperboards Karnataka unit from 1,80,000 to 3,20,000 tpa. The proposed project, entailing an investment of Rs 1,300 cr, will be financed by a mix of debt, equity and internal accruals.
Of the total project cost, Rs 725 cr has been met through term loans from lending institutions, about Rs 175 cr from internal accruals while a balance Rs 200 cr is the equity component including money raised from preference shares and the promoters’ contribution of Rs 50 cr. The company expects to implement the expansion by September 2009.
Source : ProjectsToday
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