Burnpur Cement Ltd, a West Bengal-based cement manufacturer, is foraying into the capital market with an IPO of 2,19,00,000 equity shares of Rs 10 each for cash at a premium of Rs 2 per share. The issue will open on November 28, 2007 and will close on December 3, 2007. The company proposes to list its shares on both the BSE and NSE.
The issue will comprise a reservation of up to 10,95,000 shares for its employees and the net issue to the public would be 2,08,05,000 equity shares. This net issue to the public would constitute 48.39 per cent of the fully diluted post issue paid up capital of the company.
The company plans to use the proceeds from the issue to set up an integrated clinkerisation and cement grinding plant of 800 tonnes per day capacity expandable up to 1,600tpd in Hazaribad district of Jharkhand for manufacturing clinker, OPC, PPC and PSC. It also plans to use the proceeds to meet the expenses of the issue and also to list its equity shares on the BSE and NSE. The sole book running lead manager to the issue is SREI Capital Markets Ltd.