Mumbai: Finland-based packaging firm Huhtamaki PPL Ltd, formerly known as the Paper Products Ltd, on Friday said it had raised 385 crore through allotment of non-convertible debentures (NCD).

The firm has allotted 3,850 NCDs of face value of 10 lakh each with an interest rate of 7% and due for redemption in 2020.

On 29 November, the company’s board had approved the issue of NCDs aggregating up to 550 crore on a private placement basis to Huhtalux Sarl, a related party, in one or more tranches. The funds were to be used primarily for the acquisition of shares and securities of Positive Packaging Industries Ltd.

The firm had agreed to buy 100% equity stake in Positive Packaging Industries for 2,015 crore, Mint had reported in May last year.

Positive Packaging is part of Nigeria-based Enpee Group headed by N.P. Kirpalani. It is present in nine countries including India, the United arab Emirates, Kenya, Egypt, Nigeria, South Africa, Ghana, the UK and the US. The Indian business will be acquired for 818 crore, the firm said in a filing to BSE.

Positive Packaging Industries offers packaging solutions like flexible packaging, labelling, high-quality printing and metalizing across sectors including food and beverages, fast-moving consumer goods, pharmaceuticals, and industrial and farm products.

Huhtamaki serves clients like Hindustan Unilever Ltd and Coca-Cola Co. Huhtamaki Oyj, headquartered in Finland, is one of the top 10 consumer packaging companies in the world.

At 11.26am, shares of Huhtamaki PPL Ltd were trading at 210.50, down by 0.82%, on BSE, while the benchmark Sensex was trading at 29,421.21 points, down by 0.88%.

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