India Cements, possible settlement deal

India Cements, possible settlement deal
01 April 2005

India Cements, which is on a comeback trail by trimming losses and improving price realisation, has finalised a fresh loan at low cost with an all-India institution even as the company has struck an attractive deal with Unit Trust of India for one time settlement of the entire outstanding high cost of funds.  

Last December, ICL tied up with Hong Kong’s leading fund manager, Asia debt management (ADC) for raising US$149m by way of equity and debt. Of this, it has already received US$91m. Infusion of another US$30m is expected in April.  

ICL has used the funds to settle UTI’s dues, which was not part of corporate debt restructuring (CDR). The company, like other players in the industry is set to benefit from the introduction of value added tax from April 1. Though, Tamil Nadu has not yet decided joining the regime, the tax rates will come down in the other three states. Even after passing on a portion of the gain to consumers, the cement units can hope to make a good profit depending on the extent of price level in the states.  

Published under Cement News