BILT Paper to raise $330mn via IPO on London Stock Exchange

BILT Paper Plc (BPP), a part of the Avantha Group, on Tuesday said it will raise $330 million (nearly Rs 1,480 crore) through a listing on the London Stock Exchange.

The firm said proceeds from the offer will be used to finance expansion plans and repay debt.

"The company (BPP) intends to raise gross proceeds of approximately $330 million from the issue of new shares and to use the net proceeds of the issue to finance nearly $170 million of capital expansion plans," the firm said in a statement.

BPP intends to apply for admission to the premium listing segment of the official list of the UK Listing Authority (UKLA) to trade on the main market of the London Stock Exchange and to undertake an offering of ordinary shares, it said.

As part of the plan, the company's share capital will be owned by Ballarpur Industries Ltd (79.5 per cent), through its wholly-owned subsidiary Ballarpur International Holdings BV.

The remaining portion would be held by two private equity investors, Lathe Investment Pte Ltd (12.9 per cent), a wholly owned subsidiary of Government of Singapore Investment Corporation (Ventures) Pte Ltd, and JP Morgan Mauritius (7.6 per cent).

While the company did not specify how many fresh shares would be issued through the offer, it said the two PE firms may sell a portion of their shares in the process.

The proceeds from the offer will be used to enlarge pulp facilities, as well as for expansion of two existing paper production facilities, the company said.

It will also be used to reduce debt through redemption of nearly $140 million of profit sharing certificates held by Ballarpur International Holdings (BIH), it added.

Commenting on the development, BILT Chairman R R Vederah said the Indian paper demand is expected to increase significantly throughout the next decade.

"We believe that we are uniquely placed to benefit from this opportunity and the proceeds from the listing will help us to meet this growth in demand," he added.