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India Cements has proposed fund raising to the tune of Rs 500 crore, which will be utilised for re-financing of debt and capital expenditure purposes.
In an explanatory note - updated at BSE today - to their share holders, the company said that considering the present market conditions, especially in South India; which is the major market for the company; they felt that it was prudent to improve the gearing of the company and reduce dependence on debt to the extent, where it was possible to meet other requirements of the company.
Currently, India Cements' debt stands at about Rs 3,375 crore.
Investments bankers of the company have also advised the company that it was wise to raise funds by way of offerings in domestic or international markets, QIP, FCCB, , ADRs GDR and/or other securities preference shares, issue of warrants and or through other modes.
