The Hindu Business Line : Barak Valley Cements fixes IPO price band at Rs 37-42

Mr Bijay Kumar Garodia (right), Chairman, Barak Valley Cements, with Mr B. Garodia, MD, at a press conference to announce the IPO in Mumbai on Thursday. —

Our Bureau

Mumbai, Oct. 25 Barak Valley Cements Ltd, a cement manufacturer in the north-east region, proposes to enter the capital market with an initial public offering of 56.60 lakh equity shares of face value Rs 10 each.

Shares reserved

The issue, which is being made through a 100 per cent book building process, opens on October 29, 2007 and closes on November 1, 2007. The price band has been fixed at Rs 37-Rs 42.

Of the total issue, 1.13 lakh shares have been reserved for permanent employees on a competitive basis, therefore, the net issue to the public is 55.47 lakh shares.

The net issue will constitute 25.03 per cent of the post issue paid-up capital of the company. The equity shares are proposed to be listed on BSE and NSE. The company plans to raise between Rs 20.94 crore and Rs 23.77 crore in order to part-finance expansion of clinkerisation capacity from present 420 TPD (tonnes per day) to 600 TPD, cement grinding capacity from 460 TPD to 750 TPD, investment in wholly owned subsidiary Badarpur Energy Ltd for setting up a 6-MW biomass-based power project, to meet the working capital requirements and for general corporate purpose.

Of the total equity offer, up to 50 per cent of the issue will be allocated on a proportionate basis to qualified institutional bidders (QIBs), out of which 5 per cent shall be available for allocation on a proportionate basis to mutual funds only.

Further, not less than 15 per cent of the net issue will be available for allocation on a proportionate basis to non-institutional bidders and not less than 35 per cent of the net issue will be available for allocation on a proportionate basis to retail individual bidders.

Income

For the year ended March 31, 2007, the company’s total income was Rs 74.5 crore, compared to Rs 53.67 crore in the previous year.

Net profit stood at Rs 14.27 crore, compared to Rs 11.6 crore in FY06.

UTI Securities Ltd is the book running lead manager, while Karvy Investor Services Ltd is the co-book running lead manager to the issue.