Dalmia Cement (Bharat) Ltd plans to raise up to Rs 700 crore through the issue of securities. The money, according to a company’s communication to the stock exchange, is to be used to fund its proposed expansion. The company will seek its shareholders’ nod at an extraordinary general meeting to be held on February 22. Dalmia Cement will look at various options, including preferential allotment of shares, foreign currency convertible bonds or global depository shares, to raise the money.
When contacted, Puneet Dalmia, Vice-President, Dalmia Cement, said that this was just an enabling resolution to help the company raise the funds as and when required. The company had decided to expand its cement and sugar businesses as both the sectors were doing well now. Dalmia Cement has 3.5Mta cement capacity in Tamil Nadu and another 2.5Mta through a group company in Orissa.
In the medium term, the company hoped to have a cement capacity of 10Mt. Ideally, the company would like to expand capacities in the regions where it was now present - the South and the East, Dalmia said, but it was open to the idea of setting up plants wherever the investment was justified.