Financial Daily from THE HINDU group of publications
Tuesday, Dec 13, 2005


News
Features
Stocks
Shipping
Archives
Google

Group Sites

Corporate - Announcements
Markets - Public Offer


JK Cement promoter to offload 26 pc stake

Kohinoor Mandal

Recently in Gotan , Rajasthan

MR Yadhupati Singhania, promoter and Managing Director of JK Cement Ltd, will be off-loading 26 per cent of his stake for raising around Rs 250-300 crore, early next year.

JK Cement, which is popular for its JK White Cement, will utilise the funds for upgrading its white and grey cement capacities. It will also be setting up new power generating facilities.

The company was earlier a division of JK Synthetics Ltd. It has three factories and all are located in Rajasthan.

While its grey cement manufacturing capacity would be raised to four million tonnes per annum from 3.5 million tonnes, the white cement's production capacity would be increased to 0.4 million tonnes per annum from the 0.3 million tonnes.

The cost of expanding the cement capacity would be Rs 50 crore.

However, the company will be spending another Rs 200 crore for its power facilities. The new power ventures will reduce the per unit production cost of JK Cement.

The company will be investing Rs 80 crore for setting up a 20 MW petroleum coke-based power plant and another Rs 100 crore will be spent on installing a 13 MW waste heat recovery plant.

JK Cement will be investing Rs 20 crore for replacing a 10 MW turbine in its existing thermal power at the Bamania cement unit, which produces grey cement. After the completion of these three projects, JK Cement's power production capacity will increase to 56 MW from 13 MW.

According to Mr A.K. Saraogi, President (Corporate Affairs) & Chief Finance Officer, the entire expansion activity would be funded from the proceeds of the equity dilution exercise.

The company would be offering two million shares and would be follow the book-building route.

The formal application at the Securities & Exchanges Board of India was filed on December 5, this year. DSP Merrill Lynch has been appointed as the lead manager.

"We are hoping to hit the market either by the end of January or early February, next year. Everything now depends on the time that is needed to complete the total procedure," Mr Saraogi told Business Line.

JK Cement is currently listed at the BSE and it is quoting an average price of Rs 165. Mr Singhania is holding a little of 86 per cent

Mr Saraogi did not specify the amount the company hopes to raise from the issue.

Instead he said that subsequent to the issue the promoters' stake in the company would come down to around 60 per cent.

For the year ended March 31, 2005, JK Cement registered a turnover of Rs 423.44 crore and a profit before tax of Rs 10.79 crore.

Profit after tax of the company was Rs 6.29 crore.

There are only two white cement manufacturers in the country. The other is Grasim Industries.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

More Stories on : Announcements | Public Offer



Stories in this Section
JK Cement promoter to offload 26 pc stake


Bhagyanagar Metals shortlisted for two housing projects
Ucal Fuel to exit joint venture with Engelhard
Aurobindo Pharma ARV drug in WHO list
Eastern Silk to issue Rs 200-cr FCCBs to fund expansion plans
Natco bags patent appreciation award
McLeod Russel close to acquiring Doom Dooma Tea — Size of deal likely to be Rs 50-60 cr
Opto Circuits buys German stent co
Apollo board clears 51% stake buy in Imperial
M&M to acquire 88.41 pc equity stake in Plexion
Carborundum Universal sets up unit in UAE
JRG, UAE Group in pact for stock, commodity broking operations
TRL promoters to hold talks with Indian Bank
PSU recast board okays FACT revival package
Bajaj plans fresh bike, scooter rollouts in 2006


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line