Binani Cement has initiated talks with a few foreign institutional investors (FIIs) to raise Rs 1,500 crore for its new projects. Binani’s managing director Vinod Juneja has been in talks with FIIs over the past few days to explore various options to fund its two upcoming projects, said a source close to the development.
Currently, JP Morgan holds a 15% stake in Binani, while Credit Suisse, through a Mauritius-based company, holds another 9.11%. The cement flagship of the diversified Rs 2,500-crore Braj Binani Group has plans for cement and mining projects in Gujarat and Rajasthan in 2009.
Vinod Juneja, managing director of Binani Cement confirmed to ET that the meetings with FIIs had taken place. "These are routine discussions, and we will intimate the stock exchange if any FII or overseas investors invest in the company," said Mr Juneja.
Meanwhile, Binani has acquired 25 acres of land in Gujarat. This will be to set up a 2.5Mt cement and grinding plant for Rs 800 crore.
So far, it has already tied up Rs 450 crore through a consortium of six banks, including IDBI and Punjab National Bank.
It is awaiting the mining policy of the Gujarat government to kickstart the project. It has plans to set up a captive power unit and a jetty facility in the state.
The company is also likely to form a joint venture with the Rajasthan government for lignite mining.
Binani has two overseas subsidiaries in Dubai and China, where the company is planning to increase its cement capacities. The company is scouting to acquire a proper coal mining facility near the port area in Indonesia.