JK Cement plans to raise Rs.300 crore

India’s JK Cement has announced plans to raise long-term funds of up to Rs.300 crore through securities and/or debt instruments. The plans have yet to receive shareholder approval, which will be sought at the next meeting on 1 August 2015.

JK Cement is part of the JK Organisation and currently has 10.5 million tpy of grey cement production capacity, making it one of India’s leading cement producers. Furthermore, with 600 000 t of white cement capacity in India and another 600 000 t of white cement production capacity in its plant in UAE, it is the second largest white cement manufacturer in the world.

Reports have not indicated what the funds will be spent on, but several Indian cement producers have said that they anticipate cement demand will rise from around October this year on the back of infrastructure investment and residential construction. There is also the matter of the divestments being made by Lafarge to satisfy the competition commission’s requirements in regard to the merger with Holcim. JK Cement has also said that it will increase its production capacity for wall putty in the next few years. The company recently reported an 8.5% drop in standalone net profit for the January – March quarter on the back of increased expenses. Income for the quarter increased from Rs.832.71 crore to Rs.916.05 crore.

Edited from various sources by Katherine Guenioui

Sources:

• WebIndia123
• Business Today
• IIFL
• Equity Bulls
• Money Control
• JK Cement

Read the article online at: https://www.worldcement.com/asia-pacific-rim/27052015/jk-cement-plans-to-raise-rs300-crore-907/