Ballarpur Industries spurts after IFC's investment in step-down subsidiary

Ballarpur Industries jumped 11.04% to Rs 18.10 at 10:49 IST on BSE after the company said its step down subsidiary has entered into definitive agreements with International Finance Corporation for subscription of new shares worth $100 million.

The announcement was made yesterday, 6 October 2014, when the stock market was closed on account of Eid-ul-zuha.

Meanwhile, the S&P BSE Sensex was down 96.63 points or 0.36% at 26,471.36.

On BSE, so far 5.22 lakh shares were traded in the counter as against average daily volume of 3.79 lakh shares in the past two weeks.

The stock was volatile. The stock surged as much as 13.49% at the day's high of Rs 18.50 so far during the day. The stock jumped 7.97% at the day's low of Rs 17.60 so far during the day.

Ballarpur Industries said that its step down subsidiary Bilt Paper B.V. (BPBV) (formerly Ballarpur International Graphic Paper Holdings B.V.) has entered into definitive agreements with International Finance Corporation (IFC) for subscription of new shares worth $100 millionat an implied pre money valuation of $600 million. This will result into a shareholding of IFC in BPBV of 14.29%. The subscription of shares remains subject to fulfillment of conditions set out in the definitive documents, Ballapur Industries said. BPBV is also exploring the possibility of listing of its shares at an overseas stock exchange.

Ballarpur Industries had on 3 September 2014 said that 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.

Ballarpur Industries' consolidated net profit fell 94.8% to Rs 1.12 crore on 0.4% decline 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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