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Saturday, Feb 14, 2004

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ACC to seek shareholders' nod to raise $100 m

Kripa Raman

Mumbai , Feb. 13

THE Associated Cement Companies is planning to raise funds not exceeding $100 million (about Rs 455 crore) and will seek shareholders approval for this at its EGM scheduled for March 1.

According to the resolution in the company's notice to its shareholders, the funds could be raised by any or a combination of the following measures: a public issue, private placement of shares, partially or fully convertible debentures, securities linked to equity shares, foreign currency convertible bonds, bonds with share warrants attached, issue of equity shares through depository receipts, secured or unsecured.

According to reliable sources, the company will most likely be going in for issue of global depository receipts and has been working on arrangements for the same.

The funds are largely meant for the company's modernisation and optimisation activities at its cement plants. During the next few years, capacity increases would be created at Tikaria, Chaibasa, Gagal and at Bargarh. (Idcol Cement, bought over from the Orissa Government is being renamed Bargarh Cement).

At Chaibasa, the wet process plant would be converted to a dry process one and a captive power plant set up for it. The power plant is for cost reduction because captive power plants produce power at around 50 per cent of the cost offered by some State Electricity Boards.

With the recent acquisition of Bargarh Cement, now a subsidiary of ACC, the group's capacity is 18 million tonnes. Bargarh Cement would also be modified to produce ACC Super for the eastern markets.

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