BCL to raise Rs 26.28 cr by launching IPO for cement plant

Kolkata, Nov 5 (UNI) Burnpur Cement Limited (BCL) will raise Rs 26.28 crore by launching its maiden IPO for setting up an integrated cement plant at Patratu in Jharkhand.

Announcing this here today, BCL Chairman Arvind Pande said the IPO would be launched on November 28 and closed on December 3.

Mr Pande asserted that through the IPO the company would offer 2.19 crore shares of which 10.95 shares would be reserved for employees.

The financial arrangement for the project had been completed by the company with a debt equity ratio of 2:1, where the debt component was Rs 80.6 crore and the equity component and internal accruals stood at Rs 40.3 crore, said Mr Pande.

Mr Pande informed that for the debt component BCL had tied up with eight Public Sector Banks with SBI as the lead banker for consortium term loan.

He said the plant would be the first cement unit in eastern India which would produce cement and clinker from the same plant, adding the first phase of commercial production would start by end 2008.

UNI