The Hindu Business Line : India Cements to raise $75 m thru FCCBs

India Cements Ltd on Thursday informed the stock exchanges that its board will meet on March 13 to consider issue of foreign currency convertible bonds or other securities.

It is reliably learnt that the company is considering raising between $50 million and $75 million (Rs 220 crore and Rs 330 crore) through the convertible bonds issue. The money will be used only for capital expenditure, to improve facilities at existing plants.

According to reliable industry sources, the company is looking at acquiring limestone mining leases in north India, possibly in Himachal Pradesh and Rajasthan.

The company's ownership structure is also undergoing a change with one set of promoters - the Sanmar group - selling a large part of its stake to the other set of promoters - Mr N. Srinivasan, Vice-Chairman and Managing Director, and Mr N. Ramachandran, Executive Director, of the company.

On February 27, the company informed the stock exchanges that the Sanmar group would sell 4.19 per cent of its stake to the co-promoters in an inter se transfer of shares. After this, the Sanmar group will be left with a 3.61 per cent stake in India Cements, while the promoters' shareholding will remain unchanged at 31.06 per cent.

India Cements' shares closed on Thursday at Rs 148.95, a 4.37 per cent drop from Wednesday's closing price of Rs 155.75.

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