Chettinad Cement Corporation will seek shareholders’ approval over postal ballot to delist from the stock exchanges. The Corporation will buy 11.56 per cent of Chettinad Holdings' equity of about 44.16 lakh shares to take full ownership of the company.
From being a predominant name in the South Indian market, Chettinad Cement is now spreading its tentacles to other parts of India. This should further cement the company’s profits, which have more than doubled from Rs 75.17 crore to Rs 188 crore in the year 2011-2012.
In Chennai, promoters of Chettinad Cement Corporation have increased their stake in the firm by 6.04 per cent to take it to 94.48 per cent. The company's promoters had 88.44 per cent stake prior to the fresh acquisition of shares done through a de-listing offer, the company said in a stock exchange filing on April 9.
Cement makers in South India have plans to export cement to different markets due to the depressed market conditions in the country for the second consecutive year. After testing the Sri Lankan market,
Chettinad Cement Corporation has entered into a share purchase agreement to acquire up to 61.74 per cent stake in Anjani Portland Cement for Rs 70 crore. The deal has been struck at Rs 61.75 per share. It has also triggered an open offer as per SEBI takeover norms. Chettinad Cement has reportedly said that its agreement with promoters of Anjani Portland has a built-in flexibility to ensure that its holding is limited at 75 per cent, the maximum allowed for a firm to remain listed.
Chettinad Cement Corporation Ltd (CCCL) has recently purchased 20.58 per cent shares of Anjani Portland Cement from shareholders. The company has acquired 3784.014 shares through off market purchase for a price of Rs 61.75 per share. CCCL based in Chennai, had announced its plans to acquire Anjani Portland Cement, in March 2014.
Cement consumption has charted a steady upward trend these past years. Consumption has increased from 166 mt in 2011 to 249 mt last year. On the back of key growth drivers, demand is expected to grow to 398 mt by 2017 and to 600 mt by 2025.