Heidelberg Board to consider raising Rs 370 cr through NCDs

Heidelberg Cement India's Board will meet on December 16 to consider raising Rs 370 crore by issuing non-convertible debentures (NCDs) on private placement basis.

"A meeting of the board of directors of the Company will be held on December 16, 2013, inter alia, to consider issuance and allotment of the debentures aggregating to Rs 3,700 million," the company said in a BSE filing today.

It was planning to issue Indian rupee denominated, rated, listed, unsecured, redeemable NCDs aggregating to Rs 370 crore on private placement basis.

India Ratings and Research, which was appointed by the company for obtaining credit rating, has assigned long-term issuer rating "Ind AA-" to the company's proposed issue.

The rating indicates the high degree of safety regarding timely servicing of financial obligations and very low credit risk.

Heidelberg Cement India intends to treble cement-making capacity in India to 15 mtpa (million tonnes per annum) in three-four years through inorganic and organic routes involving over Rs 8,000 crore investment. It has 5.4 mtpa capacity now.

Heidelberg Cement had entered into Indian market in 2006 with the acquisition of majority stake in Mysore Cements.

Shares of the company were trading at Rs 37.70 apiece, up 1.89%, during afternoon trade at the BSE.