India Cements raises $100m

India Cements raises $100m
Published: 17 October 2005

India Cements Ltd on Friday said it has raised US$100m (about Rs 450 crore) by issuing about 2.3 crore global depository shares (GDSs).  The GDSs, each representing two underlying equity shares of Rs 10 each were priced at US$4.3226 (Rs 194.5) or Rs 97.25 a share.  The issue price was at a 3 per cent discount to the closing price on the National Stock Exchange on October 13, a company press release said. The funds will enable the company to improve its financial leverage and grow its business.
 
The release said the pricing represented "one of the tightest discounts witnessed in recent times" by an Indian GDS offering, achieved on the back of strong demand generated from investors across Asia, Europe and the US. About 40 investors participated and the issue was oversubscribed.  The offer has a greenshoe option of up to US$15 million (about Rs 65 crore), which has not yet been exercised, according to the release.  ABN Amro Rothschild and Deutsche Bank acted as joint global coordinators and joint book-runners on this transaction. 
 
The release quoted Mr Frank Hancock, Managing Director, ABN Amro Rothschild, as saying that investors supported "this quality management team which has established an enviable track record as South India’s leading cement player."  Mr Sanjay Agarwal, Managing Director Deutsche Equities India described the successful pricing of the offering as a reflection of investor confidence in the company’s strong management team and the growth opportunities in infrastructure related assets.