Ballarpur Industries shares end 8% higher as IFC to invest in unit

MUMBAI: Shares of Ballarpur Industries closed the day 8 per cent higher as International Finance Corporation will invest USD 100 million (about Rs 616 crore) in Bilt Paper BV, a step-down subsidiary of the paper manufacturer, in lieu of fresh shares.

Ballarpur Industries' scrip settled at Rs 17.45, up 7.06 per cent from its previous close on the BSE. In intra-day, it zoomed 13.49 per cent to Rs 18.50.

At the NSE, it closed with a gain of 8 per cent at Rs 17.55.

On the volume front, 10.88 lakh shares of the company were traded at the BSE, while more than 42 lakh shares changed hands at the NSE during the day.

"BPBV has 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 had said in a BSE filing yesterday.

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

Bilt Paper is also exploring the possibility of listing of its shares at an overseas stock exchange.

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.