Mumbai, Nov 27 (UNI) Eastern India based cement manufacturing company Burnpur Cements Limited (BCL) will raise Rs 26.28 crore from the capital market to fund its expansion plans.
The Initial Public Offer (IPO) of 2,19,00,000 will hit the bourses on November 28 and will close by December 3. The price band of the IPO has been fixed between Rs 10 to Rs 12.
The issue comprises a reservation for employees of up to 10,95,000 equity shares and the net issue to the public would be 2,08,5,000 equity shares. The net issue to the public would constitute 48.39 per cent of the fully diluted post issue paid up capital of the company.
At present BCL manufactures portland slag cement at Asansol, West Bengal. As a part of its expansion plan, the company has proposed a backward integration by setting up an 800 TPD capacity clinkerisation and cement grinding unit expandable to 1,600 TDP at Patratu in the Hazirabagh district of Jharkhand.
Out of the total expansion plan of Rs 120 crore, Rs 80.60 crore would be in the form of a term loan and the Rs 26.28 crore would be the proceeds from the proposed issue. As on June 2007, the company posted a net profit of Rs 35 lakhs.