Bilt to raise Rs 250 cr via rights issue

Our Corporate Bureau

New Delhi, Sept 17: Ballarpur Industries Limited (Bilt) has decided to raise Rs 250 crore through a rights issue of fully convertible debentures for merger of Bilt Graphic Paper Limited (formerly Sinarmas Pulp and Paper) with it.

The board of directors of Bilt on Monday approved, in principle, the consolidation of Bilt Graphic Paper Limited (BGPL) with Bilt by way of acquisition of 100 per cent stake in BGPL which will be followed by the merger of the two companies.

Bilt Paper Holdings Limited (BPHL) currently hold around 83 per cent of the equity of BGPL and the balance 17 per cent is held by ICICI. The acquisition cost of equity in BGPL will be Rs 293 crore plus the holding cost from the date of acquisition and will be subject to valuation by an independent valuer. The board also considered the option of sale of shares held by it in Janpath Investments and Holdings Limited, a wholly owned subsidiary of BPHL as part consideration subject to independent valuation and statutory approvals.

The above decisions follow the acceptance of the recommendations of the three-member committee of directors set up by the board at its meeting on July 27 this year to evaluate various options for consolidation of BGPL with Bilt so as to provide transparency and opportunity for existing Bilt shareholders to share in the growth and value creation.

The committee of directors comprises of Gautam Thapar,
vice chairman and managing director, Bilt, MJ subbaiah, ICICI nominee and Sanjay Labroo, managing director, Asahi India Safety Glass.