The stake will be sold in two tranches and at ₹85 per share, which is a 10% discount to Thursday’s closing price of Shree Digvijay Cement. The total transaction value for this sale comes up to ₹631 crore.
On an integrated capacity basis, the deal has been done at a price of $81 per tonne.The transaction has also triggered an open offer for another 26% stake from public shareholders. The open offer price has been fixed at ₹92 per share, which is also lower but almost at par with Thursday’s closing price.
In addition to the promoter stake sale, Shree Digvijay Cement has also signed a 10-year exclusive cement distribution agreement with Hi-Bond Cement. This distribution deal, valued at ₹600 crore annually, will involve Shree Digvijay paying Hi-Bond a refundable deposit of ₹400 crore.
Shree Digvijay Cement will also have a call option to acquire 100% stake in Hi-Bond within the next eight years, according to the exchange filing. While Shree Digvijay operates a 3 MT plant in Gujarat’s Jamnagar, Hi-Bond runs a 3.2 MT unit in Rajkot, 90 kilometers away.
Shares of Shree Digvijay Cement ended 0.9% lower on Thursday at ₹95.86. The stock has risen 16% in the last one month, owing to which, it has also turned positive on a year-to-date basis.
