Shree Cement approves NCDs to fund expansion

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.