Hyderabad August 21: The Andhra Pradesh Paper Mills Ltd, a Bangur group company, has initiated a Rs 196-crore investment plan in two phases. Under the plan, the plant will be upgraded technologically and the capacity will be augmented up to 1,08,000 tonnes per annum, a company source said.The company, to part finance the project, has proposed a 1:1 rights issue. As per the board's recommendation, it will issue 5,62,500 equity shares of Rs 100 each at a premium of Rs 150. The Rs 100 share is now being quoted at Rs 610 on bourses.
Andhra Pradesh Paper, to facilitate the issue, is seeking the shareholders approval to increase the authorised capital from Rs 7.5 crore to Rs 20 crore in the forthcoming annual general meeting.
In the first phase, the company has proposed an approximate Rs 90-crore investment, while in the second phase it is estimated to invest about Rs 106 crore.
The company, in the first quarter of the current year, has recorded an increase in turnover by around 7 per cent to Rs 60.97 crore, from Rs 56.66 crore for the corresponding period previous year. Net profit stood at Rs 29.32 lakh.
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