Private sector firm Shiva Cement is going to allot 12 per cent stake to leading cement maker ACC, as per a share subscription agreement, with a proposal to allot 1.45 crore equity shares at a price of Rs 11 per share.
Shiva Cement would raise Rs 16 crore through the preferential issue of shares.
Shiva Cement would also now on produce its cement in the brand name of ACC as against its original trade mark, Santosh Agarwal, professional advisor to Shiva Cement, based near here, told PTI.
ACC, after the shareholders approval, will hold 12 per cent of Shiva Cement’s total equity shares and also subscribe 2.27 crore equity share warrents at the same price, which will be converted into equity shares within a period of 18 months from the date of allotment, he said.
Shiva Cement Chairman-cum-Managing Director R P Gupta had finalised the deal in the first week of April after due approval of its seven-member board of directors, he said.
The deal would take its final shape after the approval of the shareholders which is scheduled to meet on May 18, Agarwal added.
Shiva Cement Chairman-cum-Managing Director R P Gupta would continue to retain its ownership of Shiva Cement with more than 21 per cent of its total share capital though its brand name will be changed, Agarwal said.