Shree Cement Share Price Rallies 2% After Board Approves Fundraising Of Rs 700 Crore Via NCDs

44-year-old Indian cement manufacturer, Shree Cement shares gained by nearly 2% on Tuesday after the company's board of directors approved fundraising through issuance of non-convertible debentures (NCDs) to the tune of Rs 700 crore. The stock trades at over Rs 26,000 per share levels.

On BSE, the stock zoomed by at least Rs 413.5 or 1.6% to hit an intraday high of Rs 26,253.30 apiece on September 26. At the time of writing, the stock jumped by Rs 188.05 or 0.73% to trade at Rs 26,027.85 apiece on the exchange.

Its market cap stood at Rs 93,910.43 crore.

As per the regulatory filing, the Board of Directors of the company approved the issuance of secured, rated, redeemable, taxable, non-convertible debentures ("NCDs") with a base issue size of Rs 350 crore with an option to retain oversubscription up to Rs 350 crore aggregating to a total Issue size of upto Rs 700 crore.

The NCDs will be issued on a private placement basis to certain eligible investors permitted to invest in the NCDs under applicable laws.

The face value of these NCDs is Rs 1 lakh each for cash at par. The deemed date of allotment is set on September 26, 2023, while the NCDs will mature on October 26, 2030. On these debentures, interest is payable on an annual basis and redemption.

The NCDs are proposed to be listed on BSE and NSE.

During the June 2023 quarter, Shree Cement's net revenue jumped 19% YoY to Rs 4,203 crore, while total sale volume increased YoY by 19% from 7.50 million tonnes to 8.92 million tonnes. EBITDA was up YoY by 14% from Rs 819 crore to Rs 933 crore, while the sale of premium products rose to 8.8% vis-à-vis 6.3% on a YoY basis.

Shree Cement has set a capital expenditure of Rs 7,000 crore for clinker & cement capacity expansion projects.

One of the leading cement groups in India, Shree Cement t is known for its high-quality products which are manufactured at advanced manufacturing facilities across India and the UAE. It is determined to deliver the most sustainable building material solutions to its consumers. The company is relentlessly pursuing its goal of having more than 80 million tonnes of production capacity in the coming years.

As of the latest, Antique Stock Broking has given a 'Buy' rating with a target price of Rs 30,000 per share. On the other hand, Kotak Institutional Equities recommended 'Sell' for fair value of Rs 17,200 per share.

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