India Cements is said to have raised $65 million (close to Rs 300 crore) on Tuesday through pledge/sale of shares to financial institutions in order to meet capital expenditure for ongoing expansion ? a greenfield project in Rajasthan and two 50-mw projects.
Though the exact volume of shares pledged/sold was not known immediately, the company mopped up the said amount at a price of little over Rs 120 a share. It had earlier announced its intention to raise up to $100 million over a period of time to meet its future expenditure, sources said. India Cements has embarked upon expansion-cum-upgradation of its existing facilities. It also plans to set up a plant in Rajasthan with an initial capacity of 2 million tonne to take its total capacity to over 18 million tonne in the next two years compared with the expected 13-14 million tonne by the end of this month.
The cement major is in the process of setting up two 50-mw projects in Tamil Nadu and Karnataka. Power generated from these facilities will be used for captive purpose, which, in turn, will reduce operational costs. With the proposed addition of 100 mw, the company will have 200 mw of captive power, sources pointed out. India Cements has proposed to make an overall investment of Rs 1,200 crore to Rs 1,500 crore, including in power projects, sources said.