Investor: Fidelity, ABN Amro, HSBC, et al
Investment Value: $137.67 mn
The capital raised through this deal will give
the much-needed impetus to ICL’s expansion plans. Substantiates V. M. Mohan, ICL, Joint President (Corporate Finance), “We are in the process of raising capital to fund a Rs.1,450 crore expansion plan that would double its cement production capacity to 18 million tonnes over the next two years, and to set up a 40-50 MW captive power project and buy two ships for coal transport. The QIB issue is a part of that.” The company may also reduce their debt balance through these issues.
Qualified Institutional Buyers (QIBs) – Fidelity, HSBC, ABN Amro, among others – in a deal worth Rs.592 crores bought 7.5% stake in India’s third largest cement firm, India Cements Ltd. (ICL) in December last year. Considered to be the largest cement player in South India, the company boasts of seven manufacturing locations, spread over Andhra Pradesh and Tamil Nadu. ICL issued 20.78 million shares at Rs.285 per share, including premium, to these QIBs. With an objective to become a pan India cement manufacturer (and plans to increase capacity to 18 MTPA by December 2010), the company wants to use the net proceeds of the issue primarily for capital expenditure and other expenditure support. They also plan to finance new projects through this issue. The cement maker is setting up two plants in Rajasthan and Himachal Pradesh, besides having several mining leases in these two states. Considering the boom in the domestic infrastructure and real estate market, the demand for cement has been going up for some time; and ICL is poised to benefit from this latent potential.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
Investment Value: $137.67 mn
The capital raised through this deal will give
the much-needed impetus to ICL’s expansion plans. Substantiates V. M. Mohan, ICL, Joint President (Corporate Finance), “We are in the process of raising capital to fund a Rs.1,450 crore expansion plan that would double its cement production capacity to 18 million tonnes over the next two years, and to set up a 40-50 MW captive power project and buy two ships for coal transport. The QIB issue is a part of that.” The company may also reduce their debt balance through these issues.Qualified Institutional Buyers (QIBs) – Fidelity, HSBC, ABN Amro, among others – in a deal worth Rs.592 crores bought 7.5% stake in India’s third largest cement firm, India Cements Ltd. (ICL) in December last year. Considered to be the largest cement player in South India, the company boasts of seven manufacturing locations, spread over Andhra Pradesh and Tamil Nadu. ICL issued 20.78 million shares at Rs.285 per share, including premium, to these QIBs. With an objective to become a pan India cement manufacturer (and plans to increase capacity to 18 MTPA by December 2010), the company wants to use the net proceeds of the issue primarily for capital expenditure and other expenditure support. They also plan to finance new projects through this issue. The cement maker is setting up two plants in Rajasthan and Himachal Pradesh, besides having several mining leases in these two states. Considering the boom in the domestic infrastructure and real estate market, the demand for cement has been going up for some time; and ICL is poised to benefit from this latent potential.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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