India Cements Sells Its Entire Stake In SMPL

India Cements sells its entire stake in SMPL and deals with JSW for Rs 477 crore.

India Cements has entered into an agreement to sell its entire stake in Spring way Mining Private Limited (SMPL) to JSW Cements for Rs 476.87 crore.

This information was given in a regulatory filing on October 10.

Springway Mining Pvt Ltd has leased land containing limestone in the Panna district of Madhya Pradesh.

Also, Spring way Mining Pvt Ltd is in the process of setting up a cement plant in the Damoh district of Madhya Pradesh.

Big deal in the cement business.

India Cements Limited (ICL) in a regulatory filing said that “The Company has entered into a Share Purchase Agreement with JSW Cement Limited on October 10, 2022, and has sold the entire stake held by it in SMPL for Rs 476.87 crore.” ‘

This means that SMPL is no longer a wholly owned subsidiary of ICL. The deal is expected to be completed by the end of this year.

According to the statement, out of a total of Rs 476.87 crore, ICL received Rs 373.87 crore from JSW Cement on Monday.

In this way, the deal will be completed.

JSW will release the balance amount of ₹103 crores on or before December 31, 2022, subject to fulfillment of certain conditions of the share purchase agreement.

The total assets of SMPL for the financial year 2021-22 are estimated at 14.22 crores.

India Cements has moved its wholly owned subsidiary Spring way Mining Pvt Ltd (SMPL) to JSW Cement, a subsidiary of JSW Group now controlled by industrialist Sajjan Jindal.

JSW Cement, part of the $22 billion capital JSW Group, has a current capacity of 17 million tonnes per annum (MTPA).

It plans to have 25 MTPA of production capacity by 2023 and is continuously increasing its investments to achieve this target. ICL has a total capacity of 15.5 MTPA.