Ballarpur Industries has surged 10% to Rs 17.85 on National Stock Exchange after the company said its step down subsidiary Bilt Paper BV has entered into a definitive agreement with International Finance Corp. (IFC) for the sale of new shares worth $100 million.
Following the completion of shares subscription, IFC -- the private sector lending arm of The World Bank -- will own 14.29% stake in Bilt Paper, formerly known as Ballarpur International Graphic Paper Holdings (BIGPH). The deal values Bilt Paper at $600 million.
The subscription of shares is however subject to fulfilment of conditions set out in the definitive documents, the company said.
On 27 June, Ballarpur had told stock exchanges that Bilt Paper was evaluating and exploring options for receiving equity and/or debt investment from IFC. Subsequently, on 3 September, the firm announced that IFC board had approved equity investment of up to $100 million and long-term loans of as much as $150 million. Bilt Paper is also looking at listing its shares at an overseas stock exchange, the company said in the filing.
The stock opened at Rs 18.50 and hit a high of Rs 18.50 on NSE. A combined 1.9 million shares changed hands on the counter in first half-an-hour of trading on NSE and BSE.
Following the completion of shares subscription, IFC -- the private sector lending arm of The World Bank -- will own 14.29% stake in Bilt Paper, formerly known as Ballarpur International Graphic Paper Holdings (BIGPH). The deal values Bilt Paper at $600 million.
The subscription of shares is however subject to fulfilment of conditions set out in the definitive documents, the company said.
On 27 June, Ballarpur had told stock exchanges that Bilt Paper was evaluating and exploring options for receiving equity and/or debt investment from IFC. Subsequently, on 3 September, the firm announced that IFC board had approved equity investment of up to $100 million and long-term loans of as much as $150 million. Bilt Paper is also looking at listing its shares at an overseas stock exchange, the company said in the filing.
The stock opened at Rs 18.50 and hit a high of Rs 18.50 on NSE. A combined 1.9 million shares changed hands on the counter in first half-an-hour of trading on NSE and BSE.
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