INDIA CEMENTS: NOT A STRONG FOUNDATION
Article Abstract:
India Cements Ltd (ICL) is floating a rights offer aggregating Rs160 crore in the ratio of 1:1 at a premium of Rs15 per share. It requires Rs445 crore for the acquisition of Raasi Cement (RC). To fund the acquisition, ICL has borrowed Rs180 crore from institutions, Rs54 crore through internal accruals, Rs25 crore through private placement of preference shares and Rs25 crore from the sales of ship. It has acquired 90.74 percent stake in RC. ICL has acquired the stake in RC through its subsidiaries and associates. ICL plans to merge RC with it. Its cement capacity is likely to increase to 6.6 million tonnes per annum. Cement account for 93 percent of the turnover of ICL. It has posted a sales of Rs504.02 crore, operating profit of Rs116.23 crore and net profit of Rs25.67 crore in the first half of 1998-99. It had posted a sales of Rs927.31 crore, operating profit of Rs196.77 crore and net profit of Rs58.26 crore in 1997-98. The equity of ICL is likely to increase to Rs128 crore after the rights issue. (rk)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
JUST WHEN YOU THOUGHT IT WAS SOLUBLE ... INDIA CEMENTS
Article Abstract:
India Cements (IC) first acquired a cement unit of the Cement Corporation of India (CCI). Next it bought 2 more cement companies, including Raasi Cement. It declared a profit before tax of Rs82.6 crore on a sales turnover of Rs832 crore in 1996- 97. It made a net profit of Rs47 crore on sales of Rs475 crore in the first 6 months of 1997-98. It produced 3.15 million tonnes against an installed capacity of 4.03 million tonnes in 1997-98. IC plans to finance the acquisition of Raasi Cement, having an installed capacity of 1.61 million tonnes, through a rights issue. After the acquisition of Raasi Cements, IC will be the largest cement company in southern India. (khr)
Comment:
Acquires cement unit of the Cement Corporation of India and 2 more cement firms
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
ABHISHEK CEMENTS MAY SEE REVERSE MERGER WITH RKL
Article Abstract:
The revival scheme proposed for the ailing Abhishek Cements Ltd (ACL) envisages a reverse merger of Radico Khaitan Ltd (RKL) with the sick company. RKL is to be merged with ACL and the merged entity is to be renamed as Radico Khaitan Ltd. RKL currently has a distillery, a fertiliser unit and a soya oil division. The fertiliser unit and the soya oil division are to be hived off into separate companies. RKL will be left only with the distillery and this truncated entity will take part in the reverse merger. (khr)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: CASHING IN ON CASHEW GLOBAL SHORTAGE REPORTS PUSH CASHEW PRICES TO RECORD HIGH CASHEW NYET
- Abstracts: BURSTING AT THE SEAMS: MAHAVIR SPINNING BURSTING AT THE SEAMS: VARDHMAN POLYTEX BURSTING AT THE SEAMS: VARDHMAN SPINNING
- Abstracts: GUJARAT AMBUJA CEMENTS LTD: FINANCIAL RESULTS. JUST WHEN YOU THOUGHT IT WAS SOLUBLE ... GUJARAT AMBUJA CEMENTS