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Seshasayee Paper to acquire 100% equity in Subburaj Papers

27 Jun 2011 Evaluate

Seshasayee Paper and Boards Ltd (SPB), along with its group company Ponni Sugars (Erode) Ltd, is planning to acquire Subburaj Papers Ltd (SPL), located in south Tamil Nadu. The equity acquisition is estimated to be around Rs 30 crore, while total investment, including proposed expansion, would be about Rs 250 crore. SPB would need to buy the entire equity from the Subburaj Group at a fair value of Rs 20 per equity share of Rs 10, involving Rs 30 crore. At present, SPB's annual capacity of 115,000 tonnes is fully utilized. The new paper mill would bring in a ready capacity of 60,000 tonnes per annum that could be enhanced to 90,000 tonnes with marginal investment.
 
Tirunelveli-based Subburaj Papers had set up the paper mill two years before, based on fibre. The group decided to exit from paper and approached SPB for outright divestment. SPB plans to operate the acquired outfit as a separate corporate entity for the present and would decide on a merger at an appropriate time.

Seshasayee Paper Share Price

270.95 1.70 (0.63%)
17-Apr-2026 16:59 View Price Chart
Peers
Company Name CMP
JK Paper 375.20
TN Newsprints 140.05
West Coast Paper 492.00
Emami Paper Mills 75.24
Seshasayee Paper 270.95
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