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INDIA’S 3RD LARGEST CEMENT MANUFACTURER SHREE CEMENT IS GOING TO RAISE OVER 2000cr.

Shree Cement Ltd, India’s third largest cement maker, is at an advanced stage of raising more than ₹2,000 crore through a qualified institutional placement (QIP) offering.

The money will be used for capital expenditure and debt reduction and the fund raise , which could be anywhere between ₹2000- ₹3000 crore depending on demand from investors, is expected to close within this quarter. Shree Cement has hired JM Financial and ICICI Securities as advisers to manage the QIP.

QIP is a tool, through which listed companies can sell shares, debentures, or any securities, other than warrants that are convertible into stocks, to a qualified institutional buyer. On 19 October, Shree Cement’s board had said that it planned to raise as much as ₹3,000 crore equity, in one or more tranches, through QIPs. It planned to use these funds for inorganic growth opportunities that may come up over the next 12-18 months, according to a 22 October note by HDFC Securities.

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