| Date: |
15-11-2010 |
| Subject: |
India Cements to up IndoZinc Stake, Raise Rs400 Crore to Redeem FCCBs |
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South-based India Cements is going to increase its stake in IndoZinc, the company where it has 69% stake. But the total stake will not exceed 90%, the company management said.
IndoZinc has notified the exchanges that it will issue further equity or preference shares or other equity related securities for a sum not exceeding Rs300 crore.
Indo Zinc also said it’s changing its name to Trinetra Cement.
At an analyst call last week, the India Cements management said discussions are on with merchant bankers on how to increase the stake.
India Cements through its arm ICL Financial Services had first acquired 53% stake in IndoZinc and later ramped it up to 69%.
This was done through convertible debt, which the company is also looking to convert into equity.
It had put up a plant at Mahi in Rajasthan which will start commercial production from the January quarter.
India Cements had first acquired 53% stake in IndoZinc at a valuation of close to Rs5.3 crore.
Also, India Cements’ foreign currency convertible bond (FCCB) is up for conversion in May. The company is looking at raising Rs300-400 crore further to buy out the bondholders.
It had earlier raised $65 million through qualified institutional placement to repay the amount.
The FCCB redemption amount is $75 million with a price band of Rs350 per share.
The India Cements share closed at Rs116.30 on Friday.
The company has debts of Rs2,450 crore and cash of Rs100 crore as liquid assets.
TN cement prices down Rs15
Cement prices in Tamil Nadu have been rolled back by Rs10-15 after the political pressure pressed by the present government. Prices in Chennai had reached Rs280-300 per 50 kg bag. At present they range around Rs270-285 for retail and Rs15 lesser for wholesale.
In north, prices in Gujarat have firmed up to Rs210-215 per compared with Rs150-170 earlier. In Madhya Pradesh it is at Rs220-225 per bag.
India Cements expects overall sluggishness in sales due to the extended and heavy monsoon and do not expect any growth compared with last year or may be even negative growth in some places.
India Cements sold 8,000 tones of clinker and 27.08 lakh tonnes of cement for the quarter with an average realisation of Rs2,900 per tonne including excise duty.
It has seen a sharp increase in its coal and fly ash. Fly ash prices have increased to Rs350 per tone compared with Rs60 per tonnee last year and coal prices have increased to Rs5,869 per tonne from Rs4,200 per tonne last year.
Source : dnaindia.com
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