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Century Plyboards India Ltd (CPIL) has put on hold its plans of selling a part of its stake in Cement Manufacturing Co Ltd (CMCL), its subsidiary, to private a equity firm, owing to poor present market condition.
CMCL — which is a 70.48 per cent subsidiary of CPIL — is one of the largest cement players in the Northeast, with a capacity of 1.2 million tonnes (mt) in Meghalaya.
Mr Sajjan Bhajanka, Managing Director of CPIL on Thursday said, the company had plans to offload 15-20 per cent of its stake in CMCL by issuing fresh equity to private equity firms.
“We have put that exercise (of offloading stake) on hold at present, especially due to the fact that over the past few days the market has lost over 20 per cent in value. We do not think we will get an acceptable price at the moment,” he said at a select press meet here.
The company had appointed a consultant to do the due diligence and advise them regarding the strategic options available.
“The consultant we had appointed advised us not to sell stake now,” he said.
Meanwhile, CMCL plans to add another 3.2 mt grinding capacity in Guwahati and Bihar. Once completed, this would take up the total capacity to 4.4 mt by the end of 2012.
The existing clinker facilities in the Northeast would also be expanded, and Meghalaya alone would have a 1.75-million tonne clinker capacity, he said. .
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