Piramal Enterprises today said it has invested Rs 256.5 crore in Sanghi Industries by subscribing to the cement maker's non-convertible debentures.
The company through its Structured Investment Group subscribed to non-convertible debentures of Sanghi Industries to the extent of Rs 256.5 crore, to enable the company to term out its capital structure and repay its lenders ahead of schedule, Piramal Enterprises said in a statement.
"Sanghi Industries has built a very strong brand in Gujarat market and we feel optimistic about its growth prospects going forward," Piramal Enterprises Structured Investment Group Co-Head Jayesh Desai said.
Cement demand in India is expected to rise due to the government's push for large infrastructure projects. Higher allocation by the government towards improving rural income will also increase rural housing demand and hence, improve outlook for cement, he added.
Sanghi Industries operates one of the largest cement plants in the Kutch region with an installed capacity of 4.1 million tonnes per annum, which in-turn constitutes about 16 per cent of the state's production capacity.
"This debenture funding has opened up many new opportunities for the company. In coming months, the cement demand will be fuelled by the substantial infrastructure spending in rural regions. We look forward to a new phase of growth," Sanghi Industries CMD Ravi Sanghi said.
Shares of Piramal today ended 1.53 per cent up at Rs 1,079.05 apiece on BSE.
