The world’s fourth largest maker of thin polyester film, Polyplex, has sold 10% stake of its Thai-listed subsidiary to raise cash for further growth of business. Polyplex, that had earlier sold 6.3% stake out of 70% holding in Polyplex (Thailand) Public Company Ltd, Thailand (PTL) sold a further 3.7% stake over the last fortnight, it disclosed on Friday, leading to 3.5% rise in stock price of the parent firm on Friday.
Polyplex said, the stake sale will result in one-time gain in earnings per share and the additional share sale has been to “generate funds for growth”. It did not specify the total quantum of money raised in the process but given the trade history, it could have encashed a total of around $75-80 million.
Headquartered in Noida, it has manufacturing facilities located at Khatima (Uttarakhand), Rayong (Thailand which is owned and operated by PTL) besides one facility at orlu (Turkey).
The firm has been looking to become third largest player globally through organic expansion of its existing plants globally. In particular, the Thai arm had early this year decided to go ahead with a capacity expansion programme for its Turkish subsidiary by spending a total of $80 million.
It is banking on the fact that traditional players are not expanding capacity in the same line of business and are upgrading their products but there is still high demand for the products being made by Polyplex. It is looking to use Turkish unit to gain market leadership in its segment in Europe.
The company has been reaping benefits of higher realisation as price of thin polyester film has shot up over 70% this year in tune with demand.