The Board of cement manufacturer India Cements has approved the amalgamation of Trinetra Cement and Trishul Concrete Products with the company.
"The Board of Directors at the meeting held today (Wednesday) approved the proposal for amalgamation of Trinetra Cement Ltd and Trishul Concrete Products with India Cements Ltd subject to all regulatory approvals," Chennai-based India Cements said in a statement.
Trinetra Cement, a stock-exchange listed company, has a manufacturing plant in Rajasthan with an annual cement capacity of 1.5 million tonnes. It has a captive power plant of 20MW capacity. India Cements holds a controlling 61.22 per cent stake in the company.
Trishul Concrete Products, promoted by India Cements through its subsidiaries, is involved in manufacture of 12.3 lakh cubic metres of ready mix concrete marketed under the brand 'Coromandel', the statement said. The company has eight manufacturing plants in Chennai, Bangalore, Hyderabad and Coimbatore.
"Consequent to the amalgamation scheme, the shares held by India Cements and its two subsidiaries in the two companies will get cancelled and total number of equity shares to be issued to the remaining shareholders will be about 9.75 lakh shares, dilution of 0.32 per cent," it said.
Post merger, the paid up share capital of India Cements will marginally increase to Rs 308.15 crore from current Rs 307.18 crore.
The external debt of Trinetra Cement and Trishul Concrete Products as on March 31, 2013 was Rs 283 crore, the statement said.