India Cements Recasts Entire Raasi Board

After the successful takeover of Raasi Cement, India Cements has initiated the process of merging the former with itself having reconstituted the entire board of Raasi late last evening.

However, the timing of the merger will depend on the response to the open offer, said India Cements executives. Informed sources said that

India Cements' holding in Raasi will be going up to around 85-90 per cent after accounting for the shares received in response to its open offer which closed on June 2.

While India Cements sources refused to specify the time frame for the completion of the merger, industry sources said that that the merger should take close to six months.

 

India Cements took formal control over Raasi yesterday after it had the Raasi board recast. "India Cements has taken management control of Raasi Cement Ltd.

At a board meeting in Hyderabad, N Srinivasan, vice chairman and managing director, India Cements, was appointed the chairman and managing director of Raasi Cement," an India Cements press release issued yesterday said.

Five directors, who were the original promoter directors of Raasi Cement, resigned yesterday. They include BV Raju, executive chairman, K Bala Raju, R Kunjithapatham, K Ramai Reddy and N Kondal Rao. Members of the Raju family who continue to be on the board are NKP Raju and KV Vishnu Raju.

Other than Srinivasan, the new faces on the Raasi board include N Ramachandran, TS Raghupathy, RK Das and Munikrishna from India Cements.

Three nominee directors of financial institutions - G Sreeramamurthy of IDBI , Ramesh Chandra of IFCI and RK Baxi from GIC - will continue on the board.