Uniply Industries raises Rs 27 crore from R K Damani, Enam Investment and others

Post-issue company's liabilities will reduce to around Rs 50 crore

BSE-listed Uniply Industries has raised Rs 26.68 crore from promoters and marquee investors, including RK Damani, Ramesh Damani, Enam Investment Services and Sara Vallabh Bhanshali.

“In an ongoing effort to optimise our capital structure, we have raised a little under Rs 27 crore to help the company in bringing down high-cost liabilities. Post-issue, our liabilities will reduce to around Rs 50 crore, which is a comfortable range for our current and future growth plans,” said Keshav Kantamneni, chief executive of Uniply. The company will allot 2,668,000 shares of Rs 10 face value at Rs 100 per share for a total subscription of Rs 26.68 crore to various existing and new long-term investors, including Kantamneni, who is the largest subscriber to the offer. He will pump in Rs 5.68 crore through the preferential issue.

Kantamneni acquired Uniply in January 2015 in a Rs 126-crore deal. He acquired a little over 36 per cent from its earlier promoter BL Bengani and others for Rs 2.5 crore and announced an open offer at Rs 13.50 per share. In addition, he also undertook to pay the company's total high cost liabilities of Rs 115 crore.

Already the company has brought down the liabilities to Rs 80 crore through better realisation of inventory and reducing working capital cycle witha structured approach to receivables. With the proposed investment from promoters and preferential allotment to existing and new shareholders, the high-cost liabilities will come down further to around Rs 50 crore.

The company which was incurring losses in prior years, was brought back to profitability. In 2014-15 it has registered a net profit of Rs 40 lakh as against a net loss of Rs 3 crore in the previous year.

Uniply is also in the verge of acquiring manufacturing facilities in Gujarat and talks are in advanced stages to acquire a manufacturing unit of another leading brand, which will enable the company to double its production capacity.

Kantamneni said the company would look at facilities which will not cost them over Rs 30 crore. He ruled out anymore fund raising in the coming months.