Shiva Cement board today could not approve the proposal to allot 14.5 million equity shares to ACC and 25.7 million share warrants on preferential basis as the "in-principle" clearance from SEBI has not been received till now.
A senior ACC official told Business Line: "It not a stumbling block but a pure procedural bottleneck". Shiva’s board would again take up the issue at its next board meeting scheduled for June 18. ACC official confirmed the agreement between the two companies stands unaltered. It is expected that market regulator’s nod would be obtained by June 15.
still indirectly controlled by Holcim is taking up 12 per cent stake as a strategic investment in Shiva Cement. The warrants which are to be due for conversion in the 2007-08 financial year would take ACC stake even higher. In the next couple of years ACC aims to raise the investment in Orissa - based Shiva to a level of a joint venture.
ACC has already entered into a supply agreement with Shiva, which is in the middle of a major restructuring. Its Rourkella plant has a clinker capacity of 350tpd.
ACC wants to help to raise the capacity to a level of 3Mta over a period of time. Shiva has lime stone mining interest and also has plans to acquire more mining lease in the State.
The Shiva board also deferred decision on allotment of shares to existing shareholders on conversion warrants, issued earlier, till the next board meeting.