Emami Cement Limited (ECL), named among the leading cement manufacturing companies in Eastern India, filed its DRHP with SEBI on October 12, 2018.
ECL established an installed manufacturing capacity of 5.60 million metric tonne per annum (“MMTPA”) in their first two years of commercial operations, making them one of the fastest growing cement companies to achieve such feat amongst cement manufacturers operating in Eastern India. For the three months ended June 30, 2018, ECL had a market share of 5% in terms of cement sales volume, while installed cement manufacturing capacity represented 6% of the total installed capacity in Eastern India (including North East) in Fiscal 2018. (Source: CRISIL Report). ECL currently operates three manufacturing plants and are in the process of setting up another plant, which subject to receipt of necessary approvals is expected to result in an aggregate installed capacity of 9.30 MMTPA of cement and 3.20 MMTPA of clinker by April 2019.
The IPO Initial Public Offering (IPO) comprises of equity shares of face value of Rs. 10 each (the “Equity Shares”) of Emami Cement Limited (our “Company”) aggregating up to Rs. 10,000.00 million (the “Offer”) comprising a fresh issue aggregating up to Rs. 5,000.00 million and an offer for sale up to Rs. 5,000.00 million. The offer for sale comprises of equity shares offered by Dr. Radhe Shyam Agarwal, by Dr. Radhe Shyam Goenka, equity shares by Aditya Vardhan Agarwal, equity shares by Harsh Vardhan Agarwal, equity shares by Bhanu Vyapaar Private Limited, equity shares by Diwakar Viniyog Private Limited, equity shares by Suntrack Commerce Private Limited (collectively, the “Promoter Selling Shareholders”) and equity shares by the other selling shareholders (as defined hereinafter) (together with the promoter selling shareholders, the “Selling Shareholders” and such offer, the “Offer For Sale”). The offer includes a reservation of for subscription by the eligible employees (as defined hereinafter) which shall not exceed 5% of the post-offer equity share capital of the Company).
The Company proposes to utilize the Net Proceeds raised through the Fresh Issue for: (i) repayment and/or prepayment of certain indebtedness (Rs. 4,000 million); and (ii) General corporate purposes..
IIFL Holdings Limited, Axis Capital Limited, CLSA India Private Limited, Edelweiss Financial Services Limited and Nomura Financial Advisory and Securities (India) Private Limited are the book running lead managers.