Following are the take aways from the meeting:
1) Preference shares worth Rs.150 crores will be issued to Jsw cement by Shiva cement at a good premium. Parth mentioned the timeline within December 2020.
2) Rs.1150 crores will be raised through Debts for which the company is in talks with National as well as
international banks. Interest rate as per Parth would be within 9% for the debt raised.3) Rest will be raised through right issue. Now for applying for the rights issue one has be shareholder of the company which goes without saying.
4) Parth has mentioned that whole project upto Cement grinding unit will be completed by the end of FY 2021 ie between December 2021 to March 2021.
5) JSW cement will be coming up with the IPO by diluting 10% of the equity having enterprise value of 2500 crores or MCAP of 25000 to 30000 crores. IPO will come up by end of 2022 ie around December 2022.
6) Parth Jindal has also confirmed to a query that additional expansion of clinker as well as grinding unit will take place in latter stage at Shiva cement.
7) Parth Jindal has confirmed that Clinker will be sold to group cement units at arms length price which is Rs.3000 per tonne currently.
8) Cement production from Shiva cement will be sold within Odisha state specially East Odisha. Also Plant manager said that there is more than enough demand to sale 100% capacity of cement produced after expansion.
9) Parth categorically mentioned that PPC cement will be produced and slag will be procured from its newly acquired bhushan power and steel unit in Odisha which is just 80 kms away from the plant and will lead to cheapest PPC produced in the region.
10) The newly appointed project manager is from Dalmia Bharat Cement unit which is very closely located to Shiva cement.
