Ballarpur Industries puts IPO plan on hold

Leading paper manufacturer, Ballarpur Industries Ltd (Bilt) has put on hold the initial public offer (IPO) of its wholly owned subsidiary, Bilt Paper plc (Bilt) due to unavailability of a benchmark pricing in India.

The company informed the BSE that Bilt’s listing on the Official List of the FSA and the main market of the London Stock Exchange by way of an offer of new and existing shares, has seen considerable interest and engagement from institutional investors in the UK, Europe and the United States, and recognition of the quality of the business and opportunities in India in its throughout transaction process.

However, there was an acquisition announcement this week by International Paper in the Indian market which the company believes will set a benchmark for the valuation of paper companies in India and may possibly re-rate the Indian paper industry.

Given the consideration of the interests of existing shareholders in the company, and with the objective of maximizing value for them, the company believes it is important to study the impact of this acquisition valuation over the next few months, and the potential re-rating possibilities, as against the IPO valuation in London at this time which dependent on the current UK IPO market sentiments.

The company has put on hold the IPO process and will reconsider the same as a possibility at a later time, a company statement said.