Emami Cement, which had filed its draft red herring prospectus (DRHP) with SEBI in October last year for an initial public offering (IPO) of Rs. 1,000 crore, has received the approval from the regulatory authority this month. The company has to float its IPO by May 14, 2020.
The IPO comprises of equity shares of the face value of Rs 10 each aggregating up to Rs 1,000 crore comprising a fresh issue aggregating up to Rs 500 crore and an offer for sale up to Rs 500 crore. The offer includes a 5 percent reservation for subscription by the eligible company employees.
In its DRHP, Emami Cement said that the fund so raised would be used to reduce the company’s indebtedness which, according to a Crisil report, stands at Rs 2,179.50 crore. Part of the proceeds from the fresh issue of shares is also to be used for general purposes.
It is also in the process of setting up a cement grinding plant at Kalinganagar in Odisha, which will have an installed capacity of 2.50 mtpa and subject to the receipt of necessary approvals.