Emami Cement gets Sebi nod for IPO

Emami Cement gets Sebi nod for IPO

Emami Cement (ECL), the cement arm of Kolkata-based Emami Group, has got the capital market regulator Securities and Exchange Board of India's (Sebi) nod for initial public offering (IPO) to raise Rs 1,000 crore. It has filed its draft red herring prospectus (DRHP) with Sebi on October 12, 2018.

ECL has an installed manufacturing capacity of 5.60 million tonnes per annum (mmtpa). It currently operates three manufacturing plants and is in the process of setting up another plant, which, subject to receipt of necessary approvals, is expected to result in an aggregate installed capacity of 9.30 mmtpa of cement and 3.2 mmtpa of clinker.

The proposed IPO comprises equity shares of face value of Rs 10 each of Emami Cement aggregating up to Rs 1,000 crore, including a fresh issue aggregating up to Rs 500 crore and an offer for sale up to Rs 500 crore.

The company proposes to utilize the net proceeds raised through the fresh issue for repayment and prepayment of certain debts mounting to about Rs 400 crore.

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