BMM seeks to raise US$33m from IFC

BMM Cements Ltd (BCL) is planning to raise US$33m (around INR2bn) from the International Finance Corporation (IFC) to fund its turnaround, Business Standard of India reports.

Currently part of Bharat Mines & Minerals group (BMM group), BCL shareholders in November 2014 had agreed to transfer ownership to Sagar Cements Ltd (SCL). After the transfer, BCL will become a wholly owned subsidiary of SCL.

BCL has a 0.95Mta integrated cement manufacturing unit in Anantpur district, Andhra Pradesh. The cement plant was commissioned in 2012 but due to various internal and external constraints, capacity utilisation has been low since inception and it has been incurring losses, the report stated.

To turn the company around, BCL would need an investment of US$104m, said the IFC. The amount would be funded through an equity contribution of US$47.5m, working capital loans of US$6.5m and long term debt of US$50m, which includes an IFC investment of US$33m. The IFC added that the investment will help protect existing jobs and also create new direct and indirect jobs.