Ballarpur Industries said to plan $250 million IPO of unit in Singapore

 

Mumbai/London: Ballarpur Industries Ltd., the Indian paper maker controlled by Gautam Thapar, plans to raise about $250 million in a Singapore listing of its international operations, said people with knowledge of the matter.

 

The company is working with Deutsche Bank AG on the deal, said the people, who asked not to be identified because the information is private. 

The share sale may take place in the second half, they said.

 

Ballarpur Industries is pursuing an IPO of the business as it seeks to cut debt that swelled to Rs5,210 crore ($853 million) by the end of December, from Rs3,880 crore in June 2011, data compiled by Bloomberg show. 

 

The company said this month that it’s considering options for fundraising, without providing specifics.

Shares of Ballarpur Industries rose as much as 9%. They were trading 5.7% higher to Rs15.85 at 2:29 pm in Mumbai, headed for the highest close since June.

 

“The company continually reviews its financing requirements and will announce any plans at the appropriate time,” Shravani Dang, a spokeswoman for Ballarpur Industries, said in an emailed statement. Linus Chettiar, a Mumbai-based spokesman at Deutsche Bank, declined to comment.

 

In 2011, Ballarpur Industries deferred plans for a $330 million London initial public offering of its unit BILT Paper Plc. BILT said at the time it will wait to seek a higher price, after US-based International Paper Co. agreed to buy Indian rival Andhra Pradesh Paper Mills Ltd. for almost three times its market value.

 

Thapar is also seeking buyers for his stake in electrical equipment maker Crompton Greaves Ltd., people familiar with the matter said in March. Bloomberg

 

TANYE TAPAS,

PGDM 2ND SEM,

SOURCE:- MINT