In a major development, N. Srinivasan, Vice Chairman & Managing Director of India Cements Limited (ICL), has bought the stake of his brother and Executive Director of the company, N Ramachandran. Srinivasan will now be the sole promoter with 28% stake.
The ICL board informed the BSE, that the resignation of Ramachandran had been accpeted by the board at its meeting on Thursday (August 12) and the resignation would come into effect with the closing of business hour the same day.
Earlier in 2005-06, the co-promoter of ICL, Sanmar group had exited from ICL, after Srinivasan and his brother Ramachandran acquired the stake of co-promoters for a consideration of more than Rs 300 crore.
Ramachandran's decision to exit from ICL has come at a time when the company is in full expansion mode. At the recently concluded 63rd AGM, the members had approved the decision to raise $100 million (Rs 500 crore), to fund a part of the $300 million (Rs 1,500 crore) capital expenditure earmarked for its expansion plans over the next two years, while the rest would be raised through internal accurals.
The annual net profit of India Cements dipped to Rs 432.18 crore for 2008-09 as against Rs 637.54 crore posted in the previous fiscal year. However, the companies total income grew by 10% to Rs 3,954.53 crore as compared to Rs 3,595.48 crore.