India: HeidelbergCement gets shareholders nod to raise up to INR20bn

India: HeidelbergCement gets shareholders nod to raise up to INR20bn
Published: 13 June 2013

Tagged Under: India HeidelbergCement 

HeidelbergCement said its shareholders have accorded approval for raising funds up to INR20bn (US$340m) through borrowings.

The shareholders had approved the proposal at its annual general meeting that took place on 16 May, HeidelbergCement said in a BSE filing.

Shareholders have delegated to Board the authority "for borrowing from time to time, as it may think fit, any sum or sums of money not exceeding INR20,000m on such security and on such terms and conditions as the Board may deem fit, including the borrowings in foreign currency equivalent to INR20,000m through External Commercial Borrowings (ECBs)."

HeidelbergCement, which recently decided to sell its 0.6Mta grinding facility in Raigad to JSW Group, has a capacity to produce 5Mta of cement in India.

The sale of the unit is in line with its philosophy of divesting less strategic assets with lower margins to focus on more strategic and key operations in Central India, it had said at the time of entering into an agreement with JSW Group.

However, it had maintained that India would continue to be a high-growth market and HeidelbergCement Group remains committed towards its growth plans for the country and would look at all organic and inorganic paths of growth.