ACC enters into agreement with Shiva Cement Limited

ACC enters into agreement with Shiva Cement Limited

ACC has today entered into a Share Subscription Agreement with Shiva Cement Limited (SCL), Rourkela, Orissa by which ACC would be inducted as a shareholder of this company. This Agreement inter alia includes the following:

i. subscribing to Preferential Allotment of 1,45,00,000 Equity Shares of Shiva Cement Limited with a face value of Rs. 2/- and a premium of Rs. 9/- per Equity Share in all, aggregating to Rs. 15.95 crore;

ii. subscribing to Preferential Allotment of 2,27,00,000 warrants of Shiva Cement Limited which has an option to convert into corresponding number of Equity Shares at a face value of Rs. 2/- and a premium of Rs. 9/- per Equity Share within 18 months from the date of allotment.

The allotment would be subject to compliance with the statutory requirements including the approval of the shareholders of Shiva Cement Limited

SCL operates a mini cement plant with a clinkering capacity of 350 tonnes per day and cement grinding capacity of 130,000 tonnes per year. It has the scope of being expanded further.

ACC has a Supply Agreement with SCL in terms of which SCL will manufacture and supply cement as per our quality and other specifications for a period of five years.

ACC already has a cement plant in Orissa at Bargarh and is among the leading brands in the state. There is an expansion project currently underway at Bargarh plant by which the capacity of the plant will increase from 0.96 MTPA to 2.14 MTPA together with the setting up of a 30 MW power plant.

The arrangement with Shiva Cement Ltd. is expected to help strengthen the presence of ACC in Eastern India, particularly in its strategic markets in the state of Orissa.