In Calcutta, India, The Mysore Cement board today agreed to raise a maximum of Rs20 crore by way of equity or other instruments to bolster the company’s finances. It will now seek the shareholders’ approval in the annual general meeting on September 29.
The company has decided to retain all the options, including other financial instruments, to raise the sum. It may also make preferential placement to the promoters and persons acting in concert according to Sebi guidelines.
The promoters have been scaling up their holding in the company. For instance, GCC Investment & Trading Co Ltd, a promoter group company, recently picked up the stake of Nesher Israel Cement Enterprises Limited, the foreign equity partner in Mysore Cement. Following that, GCC has been acquiring the stake in the company on a regular basis.
“The cement industry is expected to do well for the next few years with the government’s focus on infrastructure. The real estate boom is also adding to the demand. Entry of global majors like Holcim only restate the strength of the domestic cement industry,” an analyst said.