Ballarpur Industries gains on IFC's proposed investment

Ballarpur Industries rose 3.12% to Rs 18.15 at 12:17 IST on BSE as the Board of IFC approved investment comprising a combination of an equity investment of up to $100 million and Long Term Loans of up to $150 million into its step down subsidiary.

The announcement was made during market hours today, 3 September 2014.

Meanwhile, the BSE Sensex was up 92.42 points or 0.34% at 27,111.86.

On BSE, so far 18.99 lakh shares were traded in the counter, compared with an average volume of 8.48 lakh shares in the past one quarter.

The stock hit a high of Rs 18.90 and a low of Rs 17.80 so far during the day. The stock hit a 52-week high of Rs 21.80 on 13 June 2014. The stock hit a 52-week low of Rs 9.08 on 10 September 2013.

The stock had outperformed the market over the past one month till 2 September 2014, rising 7.32% compared with 6.04% rise in the Sensex. However, the scrip underperformed the market in past one quarter, rising 0.86% as against Sensex's 9.46% rise.

The small-cap company has an equity capital of Rs 131.10 crore. Face value per share is Rs 2.

The proposed investments would be subject to satisfactory documentation and satisfaction of all necessary conditions of International Finance Corporation (IFC). The proposed investments will predominantly be used to prepay some of the existing debts.

On 27 June 2014, the company had said that Bilt Paper B.V. - BPBV (formerly known as Ballarpur International Graphic Paper Holdings), a step down subsidiary of the company, is evaluating and exploring options with IFC for receiving a potential investment from IFC, in a combination of debt and/or equity in BPBV and/or its step down subsidiaries.

BPBV is also exploring the possibility of listing of its shares at an overseas stock exchange. The company will provide further updates if and when necessary, Ballarpur Industries said in a statement.

Ballarpur Industries' consolidated net profit fell 94.8% to Rs 1.12 crore on 0.4% fall in total income to Rs 1219.06 crore in Q4 June 2014 over Q4 June 2013.

Ballarpur Industries is a paper manufacturing company.

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