Shiva Cement to allot shares to IFCI

Shiva Cement Ltd of Orissa has announced that it would allot 10 lakh equity shares to IFCI Ltd on preferential basis. Shareholders of Shiva Cement had passed the resolution for allotment of shares to IFCI in early-Jul 2007. The cement company has also announced the appointment of Santosh Kumar Jain as director with effect from 8 Aug 2007.

The project is being funded through a mix of internal accruals and debt in the ratio of 1:2. The company has strong cash flows and funds are not likely to be a constraint. The only risk is a melt-down in cement prices. During FY07, the company reported cash profit of Rs 211 crore.