However, Bangur did not specify how the funds would be used. The promoters currently hold 64.79 per cent in the company while foreign portfolio investors have an 11.88 per cent stake. Last month, the company had met institutional investors in Mumbai, Hong Kong, and Singapore. In the recent past, meetings with such investors were held in London, New York, Boston, Chicago, and San Francisco.
The firm has already chalked out an investment of Rs 948 crore towards greenfield expansion. A 3 million-tonne per annum (mtpa) plant at an investment of Rs 432 crore has been lined up at Athagarh, Odisha, which will boost its market share in the east while another 3 mtpa plant at Patas in Maharashtra is underway at a projected investment of Rs 525 crore.
For all of these projects, the company has already obtained necessary environment clearances and land has been acquired.
Outside India, the cement producer is investing another Rs 204 crore at its acquired plant in Ras Al Khaimah in the UAE to set up waste heat recovery system of 16.5 Mw. With a current installed capacity of 44.4 mtpa, Shree Cement
is the country’s third-largest cement maker, following UltraTech and Holcim and is the market leader in north India with 24 per cent market share.
These apart, Bangur is actively pursuing acquisition of the 8 mtpa Emami Cement
that will help Shree Cement consolidate its position in the east and help it topple UltraTech and Dalmia Cement to become the second- or third-largest player in the region with an 18 per cent market share.
Sources suggested while Shree Cement and other interested buyers are ready to shell out between Rs 4,000 crore and Rs 5,000 crore for the acquisition, the Emami Group - current promoters of Emami Cement
- has asked for valuation of Rs 8,000 crore.
Although interested in the buyout, Shree Cement hasn't indicated how the takeover will be financed.