IFCI may buy stake in Shiva Cement; ACC gets board nod

IFCI may buy stake in Shiva Cement; ACC gets board nod
Published: 20 June 2007

Shiva Cement, said its Board of Directors are planning to issue 10 lakh equity shares at a price of Rs 9 each to domestic financial institution IFCI, on preferential allotment basis.

The board has also given its go-ahead to ACC and other unnamed investors who will invest up to Rs 40.92 crore by subscribing to preferential issues consisting equity and hybrid securities in form of share warrants, Shiva Cement informed the BSE.

The issue to ACC is subject to approval of shareholders at the ensuing Annual General Meeting of the company.

As announced earlier, ACC would subscribe to the securities having a face value of Rs 2 each at a premium of Rs 9 per share or warrant, it added.

Assuming shareholders nod, the preferential issue of shares (1.45 crore) would raise up to Rs 15.95 crore, the share warrants (2.27 crore) would raise another Rs 24.97 crore for the Orissa-based company.

Another undisclosed strategic domestic investor has also been approved to invest in Shiva through 30 lakh equity share warrants at the same price.

The Board of Directors of Shiva Cement also approved the name of Ramit Budhraja as nominee director of ACC with effect from June 18.

Budhraja is present Business Head, Eastern Zone at ACC and director in HOLCIM (Bangladesh) Ltd.

The allotments would be subject to compliance with the statutory requirements from SEBI and others, if necessary.