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Home STOCKS International Paper results in being minority shareholder of WPCL

International Paper results in being minority shareholder of WPCL

NYSE-mentioned Global Paper Co., who offered off its controlling interest in India based producing and printing paper business International Paper APPM Constrained (IP APPM) to West Coastline Paper Mills Minimal (WCPL) last 12 months, grew to become a minority shareholder of the latter on Friday.
The US-based mostly significant diluted 17.2% of its stake in IP APPM (now renamed, Andhra Paper Limited) by way of an offer-for-sale (OFS) to institutional, high net worth individuals and retail traders in excess of the previous two days.
Pre-OFS, Worldwide Paper held 20% stake in the business. Publish OFS, they are still left with a residual stake of 2.8% only. As per Sebi rules, IP will have to wait for 12 weeks in advance of promoting of their remaining stake.
As for every the share invest in agreement with WCPL in May 2019, IP had agreed to explore many choices to divest its remaining 20% ownership interest (or 7,954,008 shares) in IP APPM. It decided to use the OFS window to market off 39.77 lakh equity shares, representing 10% of the whole paid up share capital of IP APPM to non-retail and retail investors. The OFS also experienced a greenshoe option to additionally provide up to 28.64 lakh shares, representing 7.2% stake.
The ground price for the sale was set at Rs 186 a piece, the organization mentioned in a disclosure to the inventory exchanges. The shares acquired offered off for Rs 193 a piece to non retail investors which acquired oversubscribed by two-periods. Shares bought to retail investors today, Friday, was more than subscribed by 5-periods, according to the BSE website.
The Memphis-centered global producer of renewable fibre-dependent packaging, pulp and paper merchandise, IP had obtained Andhra Pradesh Paper Mills from the LN Bangur household in Oct 2011. Just after taking care of it for about 8 decades, it entered into a share obtain agreement with Kolkata centered S K Bangur managed West Coast Paper Mills in Could 2019 to divest a managing stake of 55% out of 75% held by them.
Next an open offer in line with Sebi rules, West Coast Paper Mills acquired 17.2% stake of IP APPM from the public shareholders last yr at Rs 450.63 a share and yet another 55% stake from IP at Rs 275 for each share. Article offer and acquisition, WCPM stake in IP APPM stood at 72.2%.
As for each the agreement involving IP and WCPL, the IP transfer to divest its holding of 20% was required to comply with minimal public shareholding guildelines of Sebi.
For the quarter finished March 2020, Andhra Paper had posted a profit of Rs 92.92 crore and revenues of Rs 279.67 crore. For FY’20, profit stood at Rs 212.92 crore and revenues Rs 1269.70 crore.

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