ESS DEE Aluminium to invest Rs 1.15 billion for additional facility

Mumbai-based ESS DEE Aluminium, a pharmaceutical packaging solutions provider, said it plans to invest Rs 1.15 billion for setting up an additional facility at Daman.

The company has come out with an initial public offering to raise funds in the range of Rs 1.39 billion to Rs 1.57 billion, to fund its expansion plans. The net issue will constitute 25.79% of the paid-up capital.

The expansion plans involve an investment of Rs 181.29 million in land and building, plant and machinery will cost Rs 884.3 million, electrical installations and miscellaneous assets will require Rs 62.7 million and research and development of equipments will cost Rs 19.6 million.

For the half year ended Sept. 06, the net profit has decreased 8.4% from year ago period to Rs 89.62 million, and the net sales has declined 23.7% from year ago period to Rs 476.6 million.

The company' EPS for the year ended 2006 was Rs 31.97. Based on the EPS, the company' price/earning ratio in relation to the issue price works out to 6.26 for lower price band and 7.04 for upper price band.  

The issue opens on Dec 4th, 06 and closes on Dec 8th, 06.