India Cements Raises $65mn Via QIP; Plans To Raise More Funds
India Cements Limited is planning to raise funds to finance its expansion plans and to set up captive power plants.
The company raised $65mn through sale shares to institutions at Rs 120.20 per share through QIP. Royal Bank of Scotland and Deutsche Bank AG led the issue.
ICL is looking at raising Rs 300cr to part finance the Rs 500cr capex required for setting up two captive power plants of 50 mw each. The EPC has been given to Thyssen Krupp for the plant in Tamil Nadu while it is in the process of selecting a contractor for the other project in AP.
Also the company will require further funds to repay its Rs 380cr FCCB debt which is due for redemption in 2011. Depending on cash flow and stock market conditions, it has the option of raising fresh equity.
Last year, ICL got the approval of shareholders for raising upto $ 100mn through the issue of equity/equity linked instruments like GDS, GDR, ADR or FCCB.
The company has a debt burden of over Rs 2000cr carrying an average interest of 11%.
Transaction Reference: ET
Established in 1946, India Cements Ltd operates through 7 cement manufacturing plants spread over Southern India. The capacities of its plants are over 9 mn tn per annum. Its market cap is about Rs 3457cr.
In October 2009, has announced that it was to acquire coal mine in Indonesia for around $20 mn, funded put of internal cash generation. The deal is expected to be concluded soon.
The company had acquired Indo-Zinc Ltd in July 2009 which had tied up a Rs 300 cr credit from Yes bank at an interest rate of 10%. ICL has provided corporate guarantee for it.
This will be used to part fund IZL’s 1.5 MT greenfield plant being set up at Banswara in Rajasthan, at an investment of Rs 600 cr. The balance Rs 300cr will come from ICL by way of equity and sub-ordinated debt. This project also includes a 20 mw captive power plant.
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 15/03/10 | India Cements - QIP | IPO / Offerings | Deutsche Securities Mauritius Limited | 64.86 |
| 31/12/07 | India cements - Aquarius | Private Equity | Hexagam Investments Limited | - |
| 24/12/07 | India Cements - Nomura Holdings Inc. | Private Equity | Nomura Holdings Inc. | 150.00 |
| 10/01/05 | India Cements - ADM Capital | M&A | Asia Debt Management Hong Kong Ltd (ADM Capital) | - |
| 01/12/04 | India Cements - ADM Capital | Private Equity | ADM Capital (Hedge Fund) | 57.00 |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 03/02/12 | Private Equity | Emerging Markets Management LLC | Sintex Industries Limited | 2.97 | Completed |
| 02/02/12 | M&A | Binani Industries Limited | 3B - The Fibreglass Company | 362.00 | Completed |
| 16/01/12 | M&A | Dalmia Bharat Sugar and Industries Limited (Dalmia Cement Bharat Ltd) | Calcom Cement India Limited | 46.03 | Announced |
| 11/01/12 | M&A | Looking For | Saw Pipes Business | - | Planned |
Company |
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| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| The India Cements Limited | Anna Investments Private Limited Prince Holdings (Madras) Private Limited Vidya Subramanian Ews Finance Investments Limited |
"Dhun Building", 827,Anna Salai, Chennai-600002. |
Binani Cement Limited ACC Limited Ambuja Cements Limited JK Lakshmi Cement Limited Penna Cement Industries Limited |
www.indiacements.co.in |
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