Mumbai: Packaging material maker Ess Dee Aluminium Ltd said on Monday it plans to acquire majority stake in India Foils Ltd, after helping revive the sick unit, to help boost capacity.
In a statement to the stock exchange, Ess Dee said it will join hands with India Foils founders, Madras Aluminium Co Ltd, to revive the company through a rehabilitation scheme, permission for which is expected within the next 60-90 days.
It plans to acquire 90% in India Foils for about Rs1-1.5 billion once it comes out of the purview of the Board for Industrial & Financial Reconstruction (BIFR), Ess Dee chairman and managing director Sudip Dutta told a business news channel.
The acquisition of India Foils’ 19,000 tonnes per annum capacity would boost Ess Dee’s capacity to about 39,000 tonnes per annum, he added.
Madras Aluminium, a Vedanta group firm, currently holds a 38.8% of India Foils.
Ess Dee shares were trading 2.25% higher at Rs626, off a high of Rs680, while India Foils shares rose by their daily maximum limit of 5% to Rs16.40 in a weak Mumbai market.