Ballarpur Industries rallies over 13% as IFC invest $100 mn in subsidiary

NEW DELHI: Ballarpur Industries Ltd rallied as much as 13.49 per cent in trade on Tuesday after International Finance Corporation (IFC) said it will invest $100 million (about Rs 616 crore) in Bilt Paper BV, a step down subsidiary of paper manufacturer Ballarpur Industries, in lieu of fresh shares.

At 09:35 a.m.; Ballarpur Industries Ltd was trading 9.2 per cent higher at Rs 17.80. It hit a low of Rs 17.60 and a high of Rs 18.50 in trade today.

"BPBV has today entered into definitive agreements with IFC for subscription of new shares worth $100 million at an implied pre money valuation of $600 million," Ballarpur Industries said in a BSE filing.

"This will result into a shareholding of IFC in BPBV of 14.29 per cent," the company added.

Bilt Paper is also exploring the possibility of listing of its shares at an overseas Stock Exchange, the company said.

The subscription of shares is subject to fulfilment of conditions set out in the definitive documents, it said.

In June, Ballarpur had said that BPBV is evaluating and exploring options with IFC for receiving potential investment from IFC, in a combination of debt and/or equity in BPBV and or its step down subsidiaries, PTI reported.