Pawan Proteins

EPW Research Foundation DLF CEMENT, promoted by the DLF group which has 45 years' experience in the real estate business, is setting up a world- class cement plant with a capacity of 1.4 million tonnes per annum. The plant is to be located in Jaitaran tehsil in Rajasthan which is close to limestone reserves and is near the cement deficit northern region. The company has entered into a technical collaboration agreement with Nihon Cement Company (NCC), one of the largest cement manufacturers in Japan, under which the Japanese company will provide technology which will result in benefits such as low heat and energy consumption, emission levels conforming to international standards and waste heat recovery system which will be utilised to generate power for captive consumption resulting in substantial cost savings. In order to ensure an uninterrupted and consistent supply of power the company will also undertake captive power generation of 15 mw. Commercial production is expected to commence in January 1996. To part finance the Rs 390.2 crore project the company is entering the capital market with a public issue of 99,13,400 secured redeemable multi-option convertible debentures (MOCD) of Rs 85 each at par on June 22. Part A of Rs 50 of each MOCD will be converted into five equity shares of Rs 10 each at par on allotment while part B will be the non-convertible part carrying four options. Under the options the investor can opt for a 17 per cent simple interest on the NCD portion; cumulative interest of 17 percent on the NCD portion; opportunity to convert NCD portion into equity shares at par (in which case NCD portion will carry zero interest rate); and, last, he can dispose of the NCD portion for Rs 30 each for which arrangements have been made. The issue will be lead managed by ICICI Securities and Finance Company, ICICI, J M Financial and Investment Consultancy Services and Hongkong and Shanghai Banking Corporation.