 "Sagar Cements to raise Rs 300 crore for fund expansion")
Hyderabad-based Sagar Cements Limited has decided to raise Rs 300 crore by way of issuance of securities, including the issue of equity shares on a preferential basis to promoter and promoter group and to others.
The board of directors of the company approved the fund raising plan, which was primarily meant for expanding the capacity of the company's grinding unit at Bayyavaram in Andhra Pradesh to 1.5 million tonnes from the present 3 lakh tonne level at a cost of Rs around Rs 167 crore.
Besides this, about Rs 76 crore would be spent on setting up a 15 Mw coal fired captive power plant at its main cement plant at Mattampally in Telangana.
"To meet the demand for blended cement in AP, West Bengal and Odisha and North Eastern States, the company plans to expand the capacity of the grinding unit at Bayyavaram which was being acquired. This will enable the surplus clinker available in its Mattampally unit to the said grinding unit for cement production to cater to the above markets, which shall optimise the logistic costs. We believe that the grinding unit can meet slag requirement for its cement production from the nearby steel plants in Vizag," the company said.
The company proposes to issue 6,11,986 equity shares of Rs 10 each on a preferential basis to promoter and promoter group as part of fund raising exercise, according to the company.
Sagar Cements currently has an installed capacity of 2.35 million tonne per annum in cement manufacturing.
