JSW Cement board greenlights merger with Shiva Cement on 5-for-41 share swap
JSW Cement's board approved a scheme to merge Shiva Cement into the group, offering five new shares for every 41 Shiva shares held.
In a late-night filing, JSW Cement disclosed that its board has approved a scheme of arrangement to amalgamate Shiva Cement, issuing five shares of Rs 10 for every 41 shares of Rs 2 held by Shiva investors. The transaction awaits approvals from stock exchanges, SEBI, the National Company Law Tribunal, the Odisha Industrial Infrastructure Development Corporation and other statutory bodies, with a target completion window of 12-14 months.
By merging, the companies plan to pool financial, managerial, technical and marketing capabilities, while Shiva’s clinker facility will enable backward integration and reduce reliance on external procurement. CEO Nilesh Narwekar highlighted expected financial synergies, a simplified corporate structure and the opportunity for Shiva’s shareholders to participate in a larger, more liquid listed entity. JSW Cement, which acquired a 37% stake in Shiva in January 2018 and now holds 66.23%, operates a cement grinding capacity of 24.10 MTPA and a clinkerisation capacity of 9.74 MTPA. Its shares were trading at Rs 112.85 on the BSE, up 0.22% from the prior close.
Why it matters
The merger could reshape India's cement market by creating a larger, more efficient player with integrated production capabilities.
In this story
