ACC has increased its stake to 14.7 per cent in Shiva Cement from 11.22 per cent as on June 30 this year.
Mr Ramit Budhraja, Business Head (East) of ACC, told Business Line on Friday that the increase was the result of conversion of a portion of warrants into equity and also direct purchase from promoter entities.
The shareholding pattern and paid-up capital of Shiva Cement, which is undergoing a restructuring and expansion phase for some time, is poised for further changes in the next few quarters. Mr Budhraja said the proposed capacity expansion of Shiva, with which ACC has 100 per cent production buying arrangement, should be finalised by the end of December.
“The financing part of the project would also be worked out simultaneously. Depending on that ACC would decide on further conversion of warrants,” he added.
After the conversion of all warrants, ACC, indirectly controlled by Holcim, would have around 35 per cent stake in it.
At Shiva Cement’s EGM on September 6, 2007, shareholders had approved issue of up to 15,70,442 numbers of 9 per cent non-cumulative redeemable preference shares of Rs 2 each at a premium of Rs 7 per share to financial institutions and banks. The company on August 8, 2007, had approved allotment of 10 lakh shares to IFCI on preferential basis. Earlier, as a part of debt restructuring, it allotted shares to IDBI also.
Shiva Cement has issued equity shares warrants to six non-promoters. Over a period of time, ACC has plans to make Shiva Cement a joint venture through raising its stake in the expanding capital base of the cement company, which currently has a clinkering capacity of just 1.3 lakh tpa.
The proposed expansion may double the capacity, if not treble, Mr Budhraja said.
Meanwhile, the promoters have come out with an open offer, scheduled to open November 1, for 20 per cent stake to meet the SEBI norms.
However, the offer price of Rs 3.70 per share is far below the current market price of Rs 11.72.