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.

India Cements Ltd