Binani Cement enters capital market

Chennai, May 7 (UNI) Binani Cement Limited, a subsidiary of Binani Industries, today announced its entry into the capital market to enhance the brand name of the company.

Addressing a press conference here, Braj Binani, Chairman said the company is entering the capital market with a public offer of 20,500,000 equity shares of Rs 10 each, through the 100 per cent book building process.

The price band for the offer has been fixed between Rs 75 and Rs 85 per equity share. The offer opens today and closes on May 10, he said adding atleast 60 per cent of the offer would be allocated on a proportionate basis to qualified institutional buyers.

Mr Binani said, listing of the equity would enhance the brand name of the company and provide liquidity to the existing shareholders, besides providing a public market for the equity shares in India.

The Chairman said the company had increased the clinker capacity at its plant by 2.3 million tonnes per annum and the commercial production of the enhanced capacity was expected to commence this month.

The company also proposed to add another 44.6 MW of captive power plant to the existing 25 MW. While one unit of 22.3 MW is expected to be commissioned by June and another by October this year. The total cost of the expansion project is estimated at Rs 5750 million, he said.

The company also decided to shift one of the cement mill, procured under the cement expansion project to Neem Ka Thana, located in north Rajasthan to set up a split grinding unit, which was expected to be operational by October this year.

UNI