Burnpur Cement Limited, which is entering the capital market with an initial public offer, will set up its second cement manufacturing plant at Patratu in Hazaribagh district of Jharkhand.
The entire cost of setting up the plant has been estimated at Rs 121 crore out of which Rs 26 crore will be raised from the IPO and the rest will come from term loan, according to Mr Ashok Gutgutia, vice-chairman and managing director of the company.
The plant which is expected to be operational towards the end of next year will manufacture all the three varieties of cement ~ OPC, PPC and PSC. The plant will have a production capacity of 800tpd to be expandable up to 1600tpd.
This apart, the plant will also have a clinker manufacturing facility which the company currently has to buy from the market to feed its manufacturing plant at Asansol having an installed capacity of 1,000 tons per day. "This will help us increase our bottomline", Mr Gutgutia said. He said the company has also been looking to expand its presence in the northern part of the country.
The issue comprises of 2.19 crore equity shares of Rs 10 each at a premium of Rs 2. The issue will open on 28 November and close on 3 December.
The net issue to the public will constitute 48.39 per cent of the fully diluted post issue paid-up capital of the company.