Friday, October 26, 2007

Barak Valley IPO priced Rs 37-42/share


Barak Valley Cements will enter the primary market on Oct 29 with its 56.60-lakh share offer through the book building process.

The company has fixed the price band of the Rs 10 share between Rs 37 and Rs 42. At the lower price band, the company would raise around Rs 20.72 core and at cap price it would garner Rs 23.52 crore.

Net issue to the public of 55.47 lakh equity shares would constitute 25.03 per cent of the post-issue paid up capital. The issue closes Nov 1.

Barak Valley plans to use the proceeds to part finance expansion of clinkerisation capacity from present 420 tonne per day to 600 tpd; cement grinding capacity from 460 tpd to 750 tpd; invest in wholly owned subsidiary Badarpur Energy; set up 6 MW biomass based power project; and to meet the working capital requirements.

The shares will be listed on the National Stock Exchange and Bombay Stock Exchange.

Barak Valley Cements manufactures various grades of Ordinary Portland Cement and Portland Pozzolana Cement, and its main market is the north-eastern region of India.

The current cement manufacturing capacity of the company, including its wholly owned subsidiaries, is 760 tpd which will increase to 1,050 tpd post expansion.

Barak Valley sold around 1.60 lakh tonne of cement in 2006-07 (Apr-Mar).

 

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