Speciality Papers on buyout drive

The BSE-listed Speciality Papers has decided to invest over Rs 320 crore in acquiring three companies to strengthen its presence in the speciality paper business.

The company will shell out Rs 265 crore to acquire Reliable Paper (India), and Rs 50 crore and Rs 10 crore for Prime Industries and Opel Paper Mill, respectively.

The present production capacity of Speciality Paper is 27 tonne a day and the annual turnover is Rs 45 crore. After these acquisitions, the production capacity of the company is expected to increase to 100 tonnes a day for a annual turnover of Rs 350 crore, said Mekan Gala, CMD.

Following the acquisitions, the company will emerge as one of the leading players in the paper industry.

The company is planning to raise Rs 100 crore through the QIB route for future expansion and acquisition of more companies. Meanwhile, the company has appointed Firstcall India Equity Advisors as the M&A consultant for acquiring companies in the paper industry.

For the quarter ended June 30, the company's total income went up by 155 per cent to Rs 12.50 crore compared with Rs 4.91 crore in the corresponding quarter last year.