Binani Industries in talks to sell up to a 40 per cent stake in its subsidiary Binani Cement to raise capital to cut debt and expand cement capacities.
The company is said to be in talks with potential financial investors such as JP Morgan and state-owned funds, according to latest reports by the Economic Times. Ernst & Young (E&Y), Braj Binani’s group banker for the transaction, has been in talks with prospective investors, two sources disclosed.
In response, Sunil Sethy, executive vice chairman and managing director of Binani Industries, told the Economic Times that the company has take an in-principal approval from the board of directors to divest up to 40 per cent of its holdings on a structured basis “to facilitate its liquidity position and consolidate its growth plans.” He added that the company hopes to complete the divestment within the next few weeks.
