Morgan Stanley to infuse US$ 20 million in Ess Dee Aluminium

Ess Dee Aluminium to issue 5% stake to Morgan StanleyMorgan StanleyMorgan Stanley. Morgan Stanley to pick up 1.41 million shares at US$14.37 per share. Morgan Stanley pays premium of almost 12% of the floor price. Ess Dee Aluminium to deploy the funds for organic as well as inorganic growth. Ess Dee Aluminium sources all its raw materials from Bahrain's GARMCO. Dubai, 16th August 2007: Ess Dee Aluminium Ltd, an end-to-end pharmaceutical packaging solutions provider which sources its entire raw material from Bahrain's GARMCO has decided to issue 5% shares to Morgan Stanley on a preferential allotment basis. Morgan Stanley will pay Ess Dee Aluminium a total of US$ 20 million for the 1.41 million equity shares at US$ 14.37 per share, subject to the approval of the shareholders of Ess Dee Aluminium Ltd. These shares will be acquired by Morgan Stanley at a premium of almost 12% of the floor price. The said shares will be under lock-in for a period of one year. Commenting on the Board of Director's approval on the above deal, Mr. Sudip Dutta, Chairman and Managing Director, Ess Dee Aluminium Ltd, said: "The funds infused by Morgan Stanley will be used to consolidate and maintain Ess Dee's growth momentum and to facilitate the Company's pursuit of expanding its horizons through both organic and inorganic routes." He further added: "The packaging opportunities in the pharmaceutical, food and fast moving consumer goods (FMCG) sectors are immense and Ess Dee Aluminium with its inherent strengths, unique vertically integrated business model and end to end solutions providing capability is well poised to reap the benefits." Earlier in July, the shareholders of Ess Dee Aluminium Ltd., had approved the proposal to raise US$ 150 million from overseas markets through the issue of securities. The Company posted a consolidated net profit of Rs.16.29 crores (US$ 4 million) and a standalone net profit of Rs. 13.12 crores (US$3.28 million) for the quarter ended June 30, 2007. The Company posted consolidated gross sales of Rs. 90.80 crores (US$ 22.7 million) and standalone gross sales of Rs. 68.79 crores (US$ 17.19 million) for the quarter ended June 30, 2007.