JK Cement plans Rs250cr capex, IPO in Jan

JK Cement is embarking on a Rs 250 crore expansion plan for which it is planning an initial public offering (IPO) to raise Rs 300 crore in January 2006.

"Plans are afoot to increase the production capacities of our grey cement facility at Nimbahera and white cement plant at Gotan. We are also setting up captive thermal power plants and heat recovery systems, which will require a total investment of Rs 250 crore," A K Saraogi, chief financial officer and president (corporate affairs) of JK Cement, said.

The expansion would be completed in 22 months, he added.

Saraogi said the company is coming up with an IPO, which is expected to hit the market in January to fund the expansion.

"We may look at raising about Rs 300 crore through the IPO. We have already filed the red herring prospectus with Sebi for the issue," Saraogi added.