Burnpur Cement IPO to be priced at Rs 10-12
West Bengal-based cement-maker Burnpur Cement Ltd (BCL) has decided to make a public offer at Rs 10-12 per share during the IPO slated around June-July through the 100 per cent book building route.
By PTI |
KOLKATA: West Bengal-based cement-maker Burnpur Cement Ltd (BCL) has decided to make a public offer at Rs 10-12 per share during the IPO slated around June-July through the 100 per cent book building route.
"We have decided to keep our IPO price band at Rs 10-12 per share which is expected to hit market in June or July as we have filed the prospectus with SEBI," BCL vice-chairman and managing director Ashok Gutgutia told PTI.
The company proposed to raise about Rs 25 crore during the IPO to part finance the proposed Rs 500 crore greenfield one million tonne intergated cement plant in Jharkhand.
"The new cement unit in Jharkhand will be built in two phases. In the first phase, the project will have 0.5 million tonne capacity," Gutgutia said.
The project will begin commercial production from mid 2008 which will entail an investment of Rs 120 crore.
In the second phase, the company will add another 0.5 million tonne and 50 MW captive power plant.
BCL currently has an annual cement capacity of 0.3 million tonne.
"The Jharkhand unit will be the first cement making unit in eastern India which will produce clinker and cement at the same location," Gutgutia said.
Gutugutia said the paid up capital of the company would be enhanced to Rs 50 crore from Rs 20 crore at present.
"We will retain 51 per cent and dilute promoters stake by 49 per cent after the IPO," he added.
BCL in the last fiscal had achived a turnover of Rs 26.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
