India Cements denies rumours of Rs 500 cr funding talks with BofA, Nomura

News report of funding talks emerged after UltraTech Cement announced its plans to acquire over 70 million shares in India Cements

India Cements issued a clarification on Monday, denying reports that the company was in advanced talks with Bank of America (BofA) and Nomura to raise Rs 500 crore through bond issuance. The company said that no such proposals currently exist that would require disclosure under Regulation 30 of the Sebi (Listing Obligations and Disclosure Requirements) Regulations, 2015.

In an exchange filing, India Cements said, “The Company continuously explores and evaluates various options for meeting its funding requirements. However, there are no proposals that would merit any disclosure under the Listing Regulations.”

The company further emphasised its commitment to regular disclosures as required under Regulation 30 and stated that it was unaware of any unannounced information that could explain recent trading activity.

India Cements' funding talks

Recent news reports had suggested that India Cements was in advanced discussions with BofA and Nomura to raise up to Rs 500 crore, with each institution potentially investing Rs 250 crore. The funds, reportedly to be raised at a coupon rate exceeding 15 per cent, were intended for working capital and capital expenditure.

Sources privy to the matter had indicated that the company had engaged ICICI Bank and EY to facilitate the debt arrangement with lenders, including private credit funds.

Despite these claims, India Cements has categorically denied any ongoing discussions or proposals that would require regulatory disclosure.

UltraTech Cement to acquire 23 per cent stake in India Cements

The news report of funding talks came after Kumar Mangalam Birla-promoted UltraTech Cement’s announcement on Thursday of its plans to acquire over 70 million shares in India Cements. UltraTech’s deal represents a 23 per cent stake in Chennai-based India Cements Ltd (ICL) for Rs 1,889 crore.

The cement sector is seeing intense battle between UltraTech and Adani Group's cement arm, which recently announced a deal to acquire full control of Penna Cements at an enterprise value of Rs 10,422 crore.