Heidelberg Cement gets nod to raise Rs 2,000 cr

Heidelberg said in a Bombay Stock Exchange (BSE) filing that its its shareholders have accorded approval for raising funds up to Rs 2,000 crore through borrowings. The shareholders had approved the proposal at its annual general meeting that took place on May 16.

The company's shareholders have delegated to its Board the authority for borrowing from time to time, as it may think fit, any sum or sums of money not exceeding Rs 20,000 million on such security and on such terms and conditions as the Board may deem fit, including the borrowings in foreign currency equivalent to Rs 20,000 million through External Commercial Borrowings (ECBs).

The company recently decided to sell its 0.6 million tonne per annum (mtpa) cement grinding facility in Raigad to JSW Group, has a capacity to produce five mtpa cement in India. The sale of the unit is in line with its philosophy of divesting less strategic assets with lower margins to focus on more strategic and key operations in Central India, it had said at the time of entering into an agreement with JSW Group.