The announcement was made after market hours on Friday, 14 June 2013.

Meanwhile, the S&P BSE Sensex was up 91.63 points, or 0.48%, to 19,269.56.

On BSE, 900 shares were traded in the counter as against an average daily volume of 1,257 shares in the past one quarter.

The stock hit a high of Rs 26.25 and a low of Rs 26 so far during the day. The stock had hit a 52-week high of Rs 42.95 on 16 July 2012. The stock had hit a record low of Rs 21.55 on 9 April 2013.

The stock had outperformed the market over the past one month till 14 June 2013, rising 10.38% compared with the Sensex's 2.76% fall. The scrip had, however, underperformed the market in past one quarter, falling 4.21% as against Sensex's 2.01% fall.

The small-cap company has an equity capital of Rs 12.10 crore. Face value per share is Rs 2.

The board of directors of the company at its meeting held on 14 June 2013 has considered and approved the issue of 30 lakh cumulative redeemable non-convertible preference shares of Rs 100 each at a premium of Rs 300 each aggregating to Rs 120 crore, Emami Paper Mills said in a statement.

The shares will be issued on preferential basis to the promoters of the company in one or more tranches, it said.

The fund will be utilised for part finance of the expansion project at Balasore for manufacturing 1 lakh tonnes per annum (TPA) multi-layer coated board paper.

Emami Paper Mills reported net profit of Rs 5.56 crore in Q4 March 2013 as against net loss of Rs 6.89 crore in Q4 March 2012. Net sales rose 19.78% to Rs 141.72 crore in Q4 March 2013 over Q4 March 2012.

Emami Paper, a part of Emami Group, specialises in the manufacture of newsprint and writing and printing paper. The company enjoys the position of being the largest manufacturer of newsprint in India, and the only manufacturer in eastern India.