The Hindu Business Line : India Cements raises $100 m through GDS

The release said the pricing represented "one of the tightest discounts witnessed in recent times" by an Indian GDS offering, achieved on the back of strong demand generated from investors across Asia, Europe and the US. About 40 investors participated and the issue was oversubscribed.

The offer has a greenshoe option of up to $15 million (about Rs 65 crore), which has not yet been exercised, according to the release.

ABN Amro Rothschild and Deutsche Bank acted as joint global coordinators and joint book-runners on this transaction.

The release quoted Mr N. Srinivasan, Vice-Chairman and Managing Director, India Cements, as saying that the issuance represented 21.5 per cent of the company's post-GDS offering fully diluted equity, including outstanding warrants.

The funds will enable the company to improve its financial leverage and grow its business.

A substantial part of the money raised through this issue will be used to retire high cost debt. The GDS issue forms part of the company's strategy to raise funds to pay back high cost debt. Earlier, it had raised Rs 650 crore through a preferential issue of convertible warrants.

India Cements is also implementing a corporate debt restructuring package. The company returned to the black after three years posting a net profit of Rs 4.58 crore in 2004-05.

The release quoted Mr Frank Hancock, Managing Director, ABN Amro Rothschild, as saying that investors supported "this quality management team which has established an enviable track record as South India's leading cement player."

Mr Sanjay Agarwal, Managing Director, Deutsche Equities India, described the successful pricing of the offering as a reflection of investor confidence in the company's strong management team and the growth opportunities in infrastructure related assets.

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