Shree Cement approves NCDs to fund expansion

Shree Cement approves NCDs to fund expansion
27 September 2023

Shree Cement has approved plans to raise INR7000m (US$84.11m) through the issue of non-convertible debentures (NCD) on a private placement basis. According to Realty, the secured, rated, redeemable and taxable NCDs with a base issue size of INR3500m, with an option to retain oversubscription of up to INR3500m, will be allotted today (26 September 2023) at a face value of INR100,000 each for cash at par.

The date of maturity of the NCDs to be issued on a private placement basis to certain eligible investors is 26 October 2030. The interest will be payable on an annual basis and on redemption, said the cement producer.

Shree announced just a few months ago that it was looking to expand its production capacity with a proposed investment of INR70,000m, to be funded through internal accruals and debt, for the expansion plans. The company’s existing cement capacity stands at 49.9Mta.

It is proposing to set up a 3.65Mta clinker plant at Pali in Rajasthan and cement units of 6Mta in Pali and in Etah, Uttar Pradesh, India. Shree Cement also has plans for a 3.65Mta clinker plant at Kodla and cement capacity of 6Mta in Kodla and Bengaluru in Karnataka. The new capacity is expected to be added by the end of March 2025.

Published under Cement News