India Cements Ltd on Monday said it has entered into a pact to sell its entire stake in Springway Mining Private Limited (SMPL) to JSW Cement for a total consideration of Rs 476.87 crore. SMPL owns limestone-bearing land at Panna district and is in the process of setting up a cement plant at Damoh district in Madhya Pradesh.
The company has “entered into a Share Purchase Agreement on October 10, 2022, with JSW Cement Limited (Buyer) and divested the entire shareholdings held by it in SMPL, for a total consideration of Rs 476.87 crore,” India Cements Ltd (ICL) said in a regulatory filing.
Consequently, SMPL has ceased to be a wholly-owned subsidiary of ICL, it added.
The deal is expected to be completed by the end of this year.
Out of the total consideration of Rs 476.87 crore, ICL received Rs 373.87 crore on Monday from JSW Cement.
“Upon completion of certain conditions of the Share Purchase Agreement, the buyer will release the balance amount of Rs 103 crore on or before December 31, 2022,” it added.
For FY22, SMPL’s net worth stood at Rs 14.22 crore.
JSW Cement, part of the diversified USD 22 billion JSW Group, has a current capacity of 17 million tonnes per annum (MTPA). It plans to have 25 MTPA production capacity by 2023 and is driving investments to achieve this goal.
South-based ICL has a total capacity of 15.5 MTPA.
