MUMBAI: European banking major Deutsche Bank’s Singapore-based private equity fund and GE Capital are in the fray to pick up about 30% stake in the Gujarat-based cement major Sanghi Industries.
As part of the company’s corporate debt restructuring (CDR) package, either of the two could pump in about Rs 850 crore in the cement company.
The money to be pumped in by the foreign entity will replace the principal amount of the existing exposure of Rs 1,450 crore debt.
The debt accrued due to delay in commissioning project coupled with the cement industry went through a crisis in the late 90’s and early 2000.
With cement industry clocking a 8% growth and prices firming up (Rs 140 per bag in 2000 to Rs 190 now) the foreign players are flocking to the cement companies.
The interest is also attributed to removal of supply demand gap with no significant additional cement capacity expansion.
SOURCE:THE TIMES OF INDIA