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Our Bureau

Chennai, Jan. 9 Chettinad Cement Corporation Ltd has called off the issue of rights equity for a second time.

According to information to the stock exchange, Chettinad Cement has said that the company’s board at a meeting on Friday called off the proposed offer of equity shares on rights basis.

The decision is because of the unfavourable market conditions that would not have helped the rights issue. The company has also noted that it has not filed any draft offer document or other document with the SEBI or other statutory authorities in this regard.

Chettinad Cement has called off the plan after reviving the proposal in October 2008. It hoped to issue one equity on rights basis for every six shares held to raise Rs 250 crore.

The company first announced the decision to go for a rights issue in January 2008 to part finance the second two-million-tonne-a-year cement line at Ariyalur near Tiruchi. It envisaged an investment of Rs 450 crore.

But in June 2008, the company put the rights issue on hold because of buoyant cement prices.

The company was confident that it would generate the funds internally to fully fund the second line.

More Stories on : Rights Issue | Cement

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