MACPAC Films in its meeting held on Wednesday has decided and approved the issuance of 20,415,150 Ordinary shares of Rs. 10/- each to be offered as Right Shares at the subscription price of Rs. 15/- per share, i.e. at a premium of Rs 5/- per share.
The company has decided to offer all these shares to all the existing ordinary shareholders. The company notified that it will issue the list of all these holders in the coming weeks.
The company wishes to raise equity in order to carry out its capital expenditure with respect to Company’s business and/or to obtain funds for the purposes of the Company’s working capital requirements and repay its borrowings form financial institutions. Also, the company has decided to use the equity raised via issuance to retire loans availed from the Company’s sponsors and Associate company.
The company anticipates the issue will strengthen its equity base allowing the company to pursue growth opportunity. Furthermore, the company will be able to increase production capacity, improve plant efficiencies, expand product portfolio and increase customer base with the help of this equity.
The company’s financial projections expect an increase of 75.84% in Net Sales and 107.4% in Profit after Tax by 2020.
The complete notice can be read here.