Companies

NCL Industries raises ₹202 cr through QIP offering, to retire high cost debt

V Rishi Kumar Hyderabad | Updated on January 09, 2018

NCL Industries Limited has raised ₹201.88 crore through a Qualified Institutional Placement offer and plans to deploy the funds to retire high cost debt.

The Hyderabad-based company issued 85,00,000 equity shares of face value of ₹10 each at issue price of ₹237.50 each to Qualified Institutional Buyers.

The company aims to use the funds thus raised to retire high cost debt and reduce interest burden and thereby improve profitability.

Significantly, NCL crossed the milestone of ₹1,000 crore gross turnover in 2016-17 and posted a profit of ₹55 crore.

Both the company expansion projects including a capacity of 1 MTPA of Clinker, 0.75 MTPA of cement and 30,000 tonnes to the Bison panel Boards division have been completed.

NCL Industries was amongst few select companies which came out of the Corporate Debt Restructure (CDR) programme within a short period of time.

The company had to opt for the CDR due to adversities faced by the cement industry in the Southern region and due to the losses incurred in 2012-13 and 2013-24.

According to K Ravi, Managing Director of NCL industries, the bold initiative of the company of raising ₹300 crore through a private placement of Non-convertible Debentures in January 2016, enabled the company to come out of CDR mechanism and also embark on the expansion of its cement and boards capacity.

The placement of shares was steered by Anand Rathi Advisors Limited who acted as the sole global book running lead manager for the company.

The company shares closed at ₹243.30 on Friday, up 1.5 per cent at BSE.

Published on December 16, 2017

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