Pakka Ltd Expands Paper and Pulp Capacity Under Project Jagriti

Pakka Ltd is advancing capacity expansion under Project Jagriti, with investments focused on a new paper machine, pulp production, and power generation, alongside the utilisation of funds raised through a preferential issue.

The company has commissioned plans for a new paper machine, PM-4, with a capacity of 100 tonnes per day (TPD). The capacity of existing PM-3 is also being increased from 70 TPD to 80 TPD.

As part of the expansion, Pakka is augmenting its pulp mill capacity from 135 TPD to 175 TPD. The project also includes installation of an additional 15 MW power plant.

Pakka's preferential issue was sized at ₹114.62 crore, against which the company received ₹51.09 crore. The issue included 27,20,000 equity shares priced at ₹110 each, which were fully subscribed. Of the 90,90,000 warrants offered at ₹110 each, 77,00,000 were subscribed.

The funds raised have also been used for debt repayment. A total of ₹49.50 crore was utilised toward repayment of a term loan from Canara Bank, while ₹1.095 crore was directly deployed toward Project Jagriti.

The expansion forms part of Pakka's efforts to increase its manufacturing capacity across paper and pulp production while adding power-generation capacity.