Not even 90 days have passed since the company's 1:1 rights issue closed on January 27, for which the shareholders were asked for a friendly initial payment of Rs 6.25 per share (25 per cent of the issue price of Rs 25). The balance 75 per cent was "payable in one call made any time within 12 months of the allotment as may be decided by the board."

The company, heavily into debt to finance its mega-takeover of Raasi Cement, has decided to go in for a last-minute repair job of its skewed debt-equity ratio for the year-end, and shareholders have been rushed into a final call on their equity to pay for it.

"The ICL board decided to call thebalance amount immediately as it would help us clear off a major chunk of the institutional dues by March 31. This will greatly help improve our debt-equity ratio substantially," India Cements finance chief VM Mohan told The Financial Express.

The company's overall debt-equity ratio, said Mohan, will improve from the current level of over 2 per cent to 1.75 per cent. "We will have three more days to pay off part of the dues to the institutions, and this will help us improve our financials in the current fiscal itself. The board decision to summon the final call notice was taken keeping the March 31 deadline in mind, so that we start the next fiscal in a better financial state," Mohan said.

India Cements, which raked in around Rs 40 crore as application money, will receive the balance Rs 120 crore through this final call. The summon, at such a short notice, has come as a rude shock to shareholders. "The hurry on the part of the management to receive the final installment in such a short notice will,no doubt, help the company as they are within their right to do so. But it will unfortunately push shareholders to the wall," an ICL shareholder said.

Analysts say that the board decision to summon the final call within the current fiscal will have a positive bearing on the company's financials. "The company will start the new fiscal with a cleaner slate, with an improved debt-equity ratio," said an analyst.

The India Cements issue of 643.38 lakh shares on a rights basis was to advance funds to group associates -- ICL Financial Services, ICL Securities, Trishul Investments, Sowdambika Finance and Sivasundar Finance -- for part-funding the acquisition of Raasi Cement. The Rs 445-crore acquisition has been among the largest M&A deals in cement.

Besides the rights issue proceeds aggregating Rs 160.85 crore which will go towards funding the acquisition, India Cements has mopped up Rs 180 crore from the financial institutions and Rs 25 crore by way of sale of ships for the purpose. Another Rs 54.29 crore hasbeen generated from internal accruals. The company plans a private placement of preference shares to raise Rs 25 crore.

ICL has already decided to merge Raasi Cements with itself, which will give the merged company a whopping 30 per cent share of the southern market. Besides, a restructuring exercise has also been taken up to explore exit opportunities from non-core businesses. The ceramics division of Raasi has already been sold off to Hindustan Sanitaryware, the Calcutta-based company, for a consideration of Rs 25 crore.