IDBI has been appointed as manager to the offer, which will open on October 30 and close on November 28, according to the letter of offer submitted to the bourses. APPML is engaged in the business of manufacturing, printing and writing paper, kraft paper and uncoated paperboards with an installed capacity of 98,500 tonnes per annum.

As both the paper plants are situated at Rajahmundry, the takeover of CPL is expected to facilitate synergised operations between both the companies. CPL has embarked upon a capacity expansion plan from the existing installed capacity of 18,000 tpa to 55,000 tpa. CPL has a paid-up capital of Rs 10.90 crore comprising 60,00,000 fully-paid equity shares of Rs 10 each and 4,90,000 fully-paid optionally convertible cumulative redeemable preference shares of Rs 100 each, which can be fully redeemable by January 2004.

The shares of CPL are listed on HSE and BSE. To facilitate the payment to the offer, the company requires Rs 7.20 crore, which has been duly arranged and also it has opened an escrow account with IDBI Bank, according to the letter of offer.