The company's board has also allotted 21.93 lakh fully-paid equity shares to The Industrialisation Fund for Developing Countries at a premium of Rs 20 a share. The fund has been also allotted 21.19 lakh zero per cent convertible preference shares of Rs 100 each.

The preference shares will be convertible into equity within 18 months from the date of allotment in the ratio of one equity share of Rs 10 each at a premium of Rs 20 per share fully paid for every three convertible preference shares held.

With this allotment, the Saurashtra Cement takeover drama has taken a climactic twist, as it will be the first-ever instance of a major foreign storming in as a co-promoter in a domestic cement company.

Post-conversion, the stakes of FL Smidth and the fund are expected to go up to 21.11 per cent and 7.21 percent respectively, giving them together an equity holding just less than 29 per cent, while the domestic promoters' stake (with associates) will decline from 64.5 per cent to about 29.3 per cent. Currently, the Danish cement machinery major and the fund hold 6.85 per cent each in Saurashtra Cement.