India Cements Ltd has decided to issue global depository receipts or other securities to raise up to US$115m. The proceeds of the global issue of equity are likely to be used to swap high cost debt. The company had earlier this year raised significant funds by privately placing equity and optionally convertible debentures.
The company attributed the improved performance to buoyancy in cement demand because of which average realisation for a tonne of cement has gone up by Rs 67 to Rs 2,448 in the quarter under review compared to the previous corresponding quarter. According to a company release, clinker production during the quarter grew by 14.4 per cent to 1.456Mt, while cement production increased by 44 per cent to 1.738Mt. With higher market share for cement affording higher margin, the company also reduced clinker export and sales to 135,000t.