India Cements merges associate co with itself

New Delhi, Feb 28 (UNI) India Cements Ltd today said it will merge Visaka Cement Industry Ltd (VCIL), an associate company with an annual capacity of 1.2 million tonnes, with itself.

Post the merger, India Cements will be one of the top cement companies in India and will have a total capacity of around 12 million tonnes.

As per the arrangement, one equity share of Rs 10 in the company will be issued to VCIL's shareholders for every five equity shares of Rs 10 each.

Consequent to the above, the subscribed and paid-up equity share capital of the company will increase to Rs 260.37 crore from Rs 220.37 crore, a statement said.

The company's board has approved the scheme of amalgamation to the effective from July 1, 2006, subject to sanction of necessary authorities.

India Cements, with a capacity of around nine million tonnes, is currently adding two million tonnes capacity at its existing plants in Tamil Nadu and Andhra Pradesh.

UNI