India Cements is raising nearly Rs 250 crore through a mix of instruments to foreign investors Asia Debt Recovery Company Ltd, ADM Maculus Fund LP and Sheen Pearl Investments. The funds will be utilised to refinance the company’s existing debt and meeting its working capital needs, the company said in a notice to shareholders.
The company proposes to issue equity warrants and optionally convertible debentures. After the conversion of these two instruments into equity stock, promoters’ holding will come down from 44.97 per cent to 35.27 per cent on the expanded equity base. Foreign institutional investors’ holding will go up from 3.58 per cent to 24.39 per cent.
The cement maker has proposed to privately place 2.96 crore equity warrants, with an option to convert each warrant into one fully paid-up equity share at a strike price of Rs 47 within 18 months. The company also proposes to issue secured debentures, aggregating $116.84 million (Rs 514 crore), including optionally convertible debentures of $25 million (Rs 110 crore). On conversion, this would result into an inflow of a maximum amount of Rs 139.12 crore into the company.
