Page 61 - Plastics News September 2016
P. 61
BUSINESS NEWS
HPCL, GAIL to divest up to Mitsu Chem Plast Ltd. Listed on
50% stake in petrochem plant BSE SME Exchange
in Andhra Pradesh
MitsuChemPlast Ltd., an ISO 9001:2008 and TSO
State-owned re?ner Hindustan Petroleum Corp. Ltd TS/16494 certi?ed polymer based moulded products
(HPCL) and gas utility GAIL India Ltd will divest up to 50% manufacturing company, became the 148th company
stake in the Rs.30,000 crore petrochemical plant, being to list on the BSE SME Exchange this month, Friday
set up in Andhra Pradesh, according to PTI. HPCL and GAIL 9th September 2016 with the bell ringing ceremony.
are looking at setting up a 1 mln ton ethylene derivatives The function
plant, which will produce a wide range of petrochemical was attended
by diverse
raw material for crowd including
the manufacture Stalwart
of detergents, of Plastic
paints and industries.
coatings, Mitsu Chem
cosmetics, Plast Ltd.
textiles and Completed its Initial Public Offering on 31st August
adhesives. 2016, wherein they offered 10,00,800 shares at a IPO
“Currently, it is price of Rs. 95/- per share aggregating to Rs. 9.50
a 50:50 project crores. The issues received a very good response form
but we are open to inducting a strategic partner,” HPCL the market and received over 640 applications resulting
chairman and managing director Mukesh K. Surana told the issue being oversubscribed.Mr. Shripal Shah,
PTI. The project at Kakinada in Andhra Pradesh will Promoter Director of Aryaman Financial Services Ltd.,
costRs.30,000 crore. “We are willing to give up to 50% the merchant banker to the IPO stated that “The SME
stake in the project to the strategic partner,” he said. IPOs have giving an average return of over 8 times in
the last 3 to 4 years. Hence, nowadays many investors
Some global petrochem companies have shown interest in have started looking at the SME IPOs as a long term
the project but talks are at preliminary stage currently, value creation instrument and have added the same to
he said without disclosing details. The planned project is their investment horizon. This is the reason for many
a truncated version of the earlier proposed re?nery cum IPOs being oversubscribed and receiving good response
petrochemicals complex in Andhra Pradesh. HPCL has for from the markets. Mitsu Chem Plast is part of the SME
the time being shelved plans to build a new re?nery and Growth Story now!”. Mr. Manish Dedhia, Jt. MD and CFO
is only pursuing petrochemical project. HPCL and GAIL of the company stated that “We have been wanting to
decided to do the petrochem plan together after their go public for quite some time now, however we were
plans to team up with France’s Total, Lakshmi N. Mittal waiting for the right time and situation. Last year our
Group and Oil India Ltd (OIL) for a 15mt a year re?nery company’s turnover reached the 100 crore mark and we
cum petrochemical plant at Visakhapatnam in Andhra felt that being a 26 year old organisation if we need
Pradesh fell through. “That project fell as partners pulled to spread our wings further and explore possibilities
out one after the other due to weak global demand,” of growing the company exponentially from here, we
another of?cial said. “Now, HPCL and GAIL are looking would need access to public capital markets.
at setting up a petrochemical plant at the Petroleum,
Chemical and Petrochemicals Investment Region (PCPIR) Mitsu Chem Plast Limited is TSO TS/16494 certi?ed
sites identi?ed by the state government at Kakinada.” polymer based moulded products manufacturing
Surana said currently detailed feasibility report (DFR) is company.
being prepared and details will work out following that.
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