Cement maker Nuvoco Vistas Corporation Ltd on Friday said its wholly owned subsidiary, Vadraj Cement Ltd, will issue compulsorily convertible debentures (CCDs) worth up to Rs 1,200 crore on a private placement basis. Shares of Nuvoco Vistas rose as much as 2.1 percent to an intraday high of Rs 421.75 following the announcement.
According to the company’s filing to the stock exchanges, Vadraj Cement will issue unsecured, unlisted CCDs in two tranches of Rs 600 crore each -- Series A and Series B -- to proposed investors. The Board committee of Nuvoco Vistas, which met earlier in the day, approved the execution of securities subscription, debenture trustee, and option agreements related to both tranches.
For Series A CCDs, the agreements will be executed among Vadraj Cement, Nuvoco, Beacon Trusteeship Ltd, and Nirma Ltd; while for Series B CCDs, similar agreements will involve Niyogi Enterprise Pvt Ltd as one of the investors. Nuvoco said the requisite disclosures under SEBI’s Listing Regulations will be made upon execution of these agreements.
The company, part of the Nirma Group, is India’s fifth-largest cement producer with a capacity of 31 million tonnes per annum. It has operations spanning 85 locations, including 13 cement plants and 58 ready-mix concrete facilities, according to its official website.
Nuvoco Vistas stock is a constituent of the Nifty Smallcap 250 index with a market capitalisation of about Rs 14,940 crore. The stock has gained nearly 16 percent over the past year.
Update: This story was updated with correct figures.
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