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M. Ramesh

Chennai , Oct. 28

INTERNATIONAL Finance Corporation is likely to pick up a stake in the New Delhi-based Cosmo Films Ltd.

IFC is expected to invest $ 4 million (about Rs 18.5 crore) in the equity of the company.

The company's Executive Director, Mr S.K. Mittal, told Business Line today that the percentage of equity stake that IFC would be given for its investment would be decided at Cosmo Film's board meeting on November 1. Cosmo Films has a paid-up equity capital of Rs 17 crore.

The funds would be utilised partly for the company's upcoming EOU at Aurangabad.

Cosmo Films manufactures BOPP (bi-axially oriented polypropylene) films used for packaging. In 2003-04, the company achieved a turnover of Rs 313.30 crore and a net profit of Rs 31.51 crore. In the first half of the current year, its turnover was Rs 193.60 crore and net profit Rs 5.58 crore.

The EOU will have facilities designed to produce value-added products, which would sell for better margins, Mr Mittal said.

This is the second time that Cosmo Films is accessing finance from IFC. Three years ago, the company had received a $ 10-million term loan from the fund.

More Stories on : Financial Institutions | Mergers & Acquisitions | Packaging

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