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JSW Cement has come to an agreement with India Cements Ltd., as a consequence of which, it will get the entire stake in Springway Mining Pvt. Ltd., which is a wholly-owned subsidiary of India Cements, in Madhya Pradesh
The total deal amount is expected to be INR 604 crore. The deal amount was revealed by one of the Motilal Oswal notes.
As mandated by the agreement deal, India Cements will receive INR 127 crore as a part of advances paid. India Cement has already received INR 374 crore from JSW Cement. The remaining INR 103 crore will be released around December 31, 2022. Certain conditions in the share purchase agreement will be culminating around this time.
Springway Mining is a known player in the state and owns limestone bearing land in the Panna District of MP. It is also in the process of setting up a cement plant in the Damoh district of the state.
It is an important corporate development for India Cements with regards to its debt reduction. The proceeds could be used by India Cements to pare its long-term debt, which stands in excess of INR 3,000 crore.
Shares of India Cements fell as much as 4.6 percent in early trade to Rs 256.15.