Calcutta, July 29: SK Bangur group-controlled West Coast Paper Mills will go in for a stock split.

The board of directors of the company has recommended a split in its Rs 10-share into five, each having a value of Rs 2.

The board has also recommended the issue of convertible warrants totalling Rs 50 crore to the promoters at a price of Rs 425 per warrant. S.K. Bangur, acting in concert with other members of the promoter group of the company, acquired 8,500 shares, or 0.10 per cent of the total shareholding, through an off-market deal in early June.

The promoter group now holds 54.07 per cent share in the company against 53.86 per cent on March 31 this year.

West Coast Paper has reported a net profit of Rs 19.50 crore for the quarter ended June 30, up 30.34 per cent from Rs 14.96 crore recorded in the previous corresponding quarter. Net sales went up by only 7.3 per cent to Rs 137.38 crore.

The company also came out with its audited financial results for 2006-07.

Net profit for the year more than doubled to Rs 66.46 crore from Rs 32.03 crore in the previous year. The profitability of the company improved despite a marginal 5.18 per cent increase in net sales to Rs 554.54 crore.

Encouraged by the improved performance, the board has declared a 150 per cent dividend to its shareholders.

The board also proposed to issue fresh equity or other securities amounting to Rs 150 crore to raise the company’s capital base.

Earlier, West Coast Paper embarked upon a Rs 1,100-crore modernisation-cum-capacity expansion programme. “The company has already placed orders for major equipment comprising 70 per cent of the total outlay,” a company release said.