Burnpur Cement board clears IPO plan

The board of directors of Asansol-based Burnpur Cement (BCL) today cleared a proposal to raise funds via an initial public offering (IPO) to part-fund its one million tonne integrated greenfield cement plant to be set up at Patratu, Jharkhand with an investment of Rs 120.9 crore.

Ashok Gutgutia, vice-chairman and managing director, BCL, told reporters here that the Patratu plant is expected to start commercial production by the end of 2008.

BCL also intends to set up a power plant of 50 Mw capacity, which will need an additional investment of Rs 250 crore. The company would raise the funds through a mix of debt and equity in the ratio of 2:1.

The company, which currently owns a 0.3 million tonne cement grinding unit at Asansol, had earlier signed a deal with ThyssenKrupp Industries India, a subsidiary of ThyssenKrupp AG of Germany, for its greenfield venture at Patratu.