Blue Bird files draft prospectus

Blue Bird (India), manufacturer of paper-based notebook and stationery products, has filed its draft red herring prospectus with the Sebi to float its IPO.

The company, which has a strong presence in western and southern India, proposes to offer 10 million equity shares of Rs 10 each for cash at a premium to be decided through book building process.

Of the 10 million equity shares on offer, 50 per cent is reserved for qualified institutional bidders, another 15 per cent for non-institutional investors, and the remaining 35 per cent for retail investors on a proportionate basis.

The issue will constitute 28.57 per cent of the fully diluted post-issue equity capital of the company.

"We plan to expand our market presence for retaining our market leadership with 48 per cent market share among large players in the organised market for paper-based student/exercise book products in India'', Nitin P Sontakke, chairman, said.

''We plan to develop facilities in south India during fiscal 2007 and 2008, and increase marketing efforts and penetration in Africa," he added.

The sole book running lead manager to the issue is DSP Merrill Lynch Ltd, Sontakke informed.