Chettinad Cement to fund projects thro rights issue

Chennai: Chettinad Cement Corporation Ltd will be coming out with a rights issue to raise up to Rs 250 crore to fund a project, according to a separate announcement made by the company to the stock exchange.

Chettinad Cement has in-principle decided to set up a second line at its two-million tonne green-field cement plant coming up at Ariyalur, near Tiruchi.

Production Capacity

The company has said that it would set up an additional two-million tonne cement production line at the new facility. When completed, the total production capacity would increase to 7 million tonnes from the present three million tonnes.

According to officials, the company has opted for the expansion because of the ‘economies involved.’

The expanded facility could make use of the common facilities including the rail siding and the 30 MW coal-based power plant planned earlier. Work on the first line was proceeding with civil work in progress and machinery supplies starting.

The rights issue will be on the ratio of one share for every six held.

The premium is yet to be fixed.

On the BSE, the company’s shares opened at Rs 380 and closed at Rs 438.50, against the previous close of Rs 430.10.