BVCL plans expansion; to raise Rs 33 crore through IPO

By Staff
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Google Oneindia News

Mumbai, Aug 17 (UNI) North-East based Barak Valley Cements Limited (BVCL) will tap the capital market to raise Rs 33 crore as part of its capital expenditure towards financing its expansion plans at the present manufacturing location in Karimganj in Assam.

Addressing newspersons, BVCL Managing Director Kamakhya Chamaria has informed that the company has filed its draft Red Herring Prospectus (DRHP) to this effect with the Securities and Exchange Board of India (SEBI) and the process would be completed by next month.

The company required a total of Rs 44 crore including 20 crore for the capacity expansion and Rs 24 crore for the setting up of a power project. The BVCL has raised some amount through internal acruals and from the local funding agency and now needs about Rs 33-35 crore, Mr Chamaria said.

The company has three wholly owned subsidiaries --Badarpur Energy, Meghalaya Minerals and Mines and Cement International Limited --which are engaged in core infrastructure activities like power generation and mining operation besides Cement manufacturing.

The proposed fund raising is aimed at financing the expansion of clinkerisation capacity from present 420 Tonnes Per Day (TPD) to 550 TPD and Cement Grinding Capacity from 460 TPD to 600 TPD. Besides, the company has plans to invest in its wholly owned subsidiary companies for setting up a biomass based power project, for installation of a Cement Grinding Unit and a Limestone crushing and galvanized plant at Lumshong in Meghalaya, Mr Chamaria said.

Once, the expansion is undertaken by within a period a year, the company would be able to enhance its turnover and profitability, he said.

Currently, the company's turnover is about Rs 75 crore and net profit at Rs 14 crore. The company aims for turnover of Rs 80-85 crore for the year 2007-08, Mr Chamaria said in his projection.

UNI

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