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Friday, June 23, 2006

Blue Bird files DRHP with Sebi

Blue Bird (India), a leading manufacturer of paper-based notebook and stationery products with a strong presence in western and southern India, filed its draft red herring prospectus, DRHP, with the Securities & Exchange Board of India, Sebi to enter the capital market with its initial public offering of equity shares, as per the press release.

The company proposes to offer 10 million equity shares of Rs 10 each for cash at a premium to be decided through the book building process. Of the 10 million equity shares on offer, 50% is reserved for allotment to qualified institutional bidders, another 15% to non-institutional investors, and the remaining 35% is reserved for allotment to retail investors on a proportionate basis.

The issue will constitute 28.57% of the fully diluted post-issue equity capital of the company.

Nitin P Sontakke, chairman of the company, after filing the DRHP said "We plan to expand our market presence to enable us to retain our market leadership with 48% market share amongst large players in the organized market for paper-based student/exercise book products in India. We plan to develop facilities in south India during fiscal 2007 and 2008, and increase marketing efforts and penetration in sub-Saharan Africa".

The sole book running lead manager to the issue is DSP Merrill Lynch.

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