India Cements promoters' holding to change again

Anna Investments to acquire 8 million shares from Sanmar Group

The equity holding of the two sets of promoters of India Cements is to change shortly, for the second time in the last six months. One group is to sell its shares to the other through the stock market some time between March 3 -10, keeping the total holding of promoters in the company constant.

A press release from Anna Investments Private (controlled by N Srinivasan and N Ramachandran) said that it would acquire 8 million shares from the Sanmar Group. The Sanmar Group has trimmed its holding in India Cements to raise resources for its other business interests.

India Cements' shares currently trade around Rs 155 in the stock market. At this level, Anna Investments would have to pay about Rs 124 crore to acquire 8 million shares. Following this acquisition, N Srinivasan and N Ramachandran would hold 27.34 per cent of shares and Sanmar Group's holding will be 3.61 per cent. The total promoter holding will stand at 31.06 per cent.

The realignment of shareholding between the promoters started in September 2005. On that occasion, the N Srinivasan section acquired 11.91 per cent of the equity from the Sanmar Group.

India Cements was jointly promoted by the two groups. However, day-to-day management control has been with N Srinivasan for a while. N Sankar of Sanmar Group is the chairman of the company's governing board.

The realignment of shareholding among promoters has taken place in the backdrop of an improvement in India Cements' financial performance.

The company has raised overseas capital twice over the last 15 months; the first time through an institutional investor Asian Debt Management and the other through a Global Depository Receipts issue.

India Cements' has an installed cement production capacity of 8.81 million tonne. All its cement plants are located in South India and it is the largest among the cement manufacturers in South.