Shiva raising funds for expansion, India

Shiva raising funds for expansion, India
Published: 03 December 2009

Rourkela-based Shiva Cement is raising nearly INR80 crore through bank loans to part finance its INR165-crore expansion plan which aims at nearly quadrupling capacity to 2.3Mt. Chairman and managing director RP Gupta said IDBI Bank would provide the loan in a few months. The company would mobilise another Rs 85 crore to finance the expansion programme, he added.

Of this, the company would raise Rs 50 crore through an equity instrument, while country’s largest cement maker ACC, which holds 14% stake in Shiva, would chip in around Rs 35 crore, Mr Gupta said.

He said ACC’s stake in Shiva would not breach the 15% mark. Under the law, an investor is required to launch a 20% open offer once it acquires more than 15% stake in a company.