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Wednesday, August 23, 2006

Ess Dee Aluminium files DRHP with Sebi for IPO

Ess Dee Aluminium, EDAL, a leading pharmaceutical packaging solutions provider, has filed its draft red herring prospectus, DRHP, with Securities and Exchange Board of India, Sebi, to enter the capital market with its proposed initial public offering of equity shares, as per press release.

The company proposes to offer 69,60,000 equity shares of Rs 10 each for cash at a premium to be decided through a 100% book-built process. Of this 1,50,000 equity shares are reserved for allotment to eligible employees, thus the net offer to public stands reduced at 68,10, 000 equity shares.

The offer to public will constitute 25.79% of the post issue fully diluted equity capital.

Of the net offer to public, the company proposes to reserve 50% for allotment to qualified institutional bidders and of this 5% will be allotted to mutual funds. Of the balance, 15% is to be reserved for allotment to non-institutional bidders and the balance 35% is being reserved for allotment to retail investors on a proportionate basis.

Sudip Datta, chairman and managing director of the company, said “the company currently operates two units one in Daman and another in Goa and our wholly owned subsidiary operates four aluminium foil printing units. Further, we propose to set up a new unit - Unit III at Daman for the manufacture of aluminium foil based packaging products to enhance our product portfolio and industry reach.”

He further said, “The IPO is an important milestone in realizing our larger corporate vision. It would help strengthen EDAL’ s position in the Pharmaceutical Packaging business and tap future growth opportunities in aluminium foil based pharmaceutical, FMCH and food packaging business.”

The book running lead managers to the issue are UTI Securities and Enam Financial Consultants.


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