Astron Paper IPO subscribed 12.24 times on day three

Receives bids for 17.13 crore shares

The initial public offer (IPO) of Astron Paper & Board Mill received bids for 17.13 crore shares on the third day of the bidding for the IPO today, 19 December 2017, data on NSE showed as at 17:00 IST. The IPO was subscribed 12.24 times.

The IPO comprises of up to 1.40 crore equity shares of face value of Rs 10 each. The company has fixed the price band of Rs 45 to Rs 50 per equity share. The issue opened on 15 December 2017 and closes tomorrow, 20 December 2017.

Astron Paper & Board Mill is an Ahmedabad-based company manufacturing kraft paper. The company mainly caters to the packaging industry and the company's kraft paper is used by packaging industry in manufacturing corrugated boxes, liners, sacks and composite containers. Kraft paper is also used in textile industry, in manufacturing ordinary boxes, book/note book register bindings and envelop manufacturing.

The company plans to utilise the net proceeds from the IPO towards setting up additional facility for manufacturing of kraft paper with lower gram square meter (gsm), ranging from 80 to 180 gsm, for Rs 23.02 crore; to meet the working capital requirement of Rs 23.90 crore; and to repay unsecured loans availed by the company of Rs 8.10 crore; apart from the benefits of listing the equity shares on the BSE and the NSE and to enhance its visibility and brand image and provide liquidity to its existing shareholders.

Astron Paper & Board Mill reported net profit of Rs 9.46 crore on net sales of Rs 110.95 crore in six-months ended September 2017.

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