Bids for Cement Corp of India units invited

Bids for Cement Corp of India units invited
Published: 13 August 2013


SBI Capital Markets has invited global bids to sell state-run Cement Corp of India Ltd's four non-operating units through an e-auction process.    

The company has put its 400,000tpa works in Akaltara (state of Chhattisgarh), and 198,000tpa plant at Kurkunta, (Karnataka), up for sale at a reserve price of INR1.83bn and INR2.6bn, respectively.    

Its 380,000tpa Mandhar unit in Chhattisgarh and 400,000tpa Nayagaon unit in Madhya Pradesh have also been put up for sale, according to an advertisement in The Economic Times today.  The base price for Mandhar unit has been set at INR4.2bn, and the Nayagaon unit at INR4.6bn.

The Board for Industrial and Financial Reconstruction in 2003 had constituted an assets sale committee for selling off Cement Corp as a whole or in parts after declaring it “sick.” The Industrial Finance Corp of India was appointed to facilitate the sale of Cement Corp and its units, and SBI Capital Markets was appointed the adviser.