India Cements on October 10 announced it has entered into in a pact with JSW Cement to divest its entire stake in Springway Mining Pvt Ltd (SMPL) for nearly Rs 477 crore.
"This is to inform you that our company has entered into a Share Purchase
Agreement on 10.10.2022 with JSW Cement Limited (buyer) and divested the entire shareholdings held by it in Springway Mining Private Limited (SMPL), for a total consideration of Rs 476.87 crore," India Cements informed the stock exchanges.
"Consequently, SMPL ceased to be the wholly owned subsidiary of our company," the regulatory filing added.
SMPL has a net worth of Rs 14.22 crore, the filing stated, adding that the company had a nil turnover in fiscal year 2021-22.
The buyer, JSW Cement, has so far paid Rs 373.87 crore as part of the deal to acquire the stake in SMPL. The remaining amount of around Rs 103 crore will be paid on or before December 31, 2022, India Cements said.
As per the filing, SMPL owns a limestone bearing land in Madhya Pradesh's Panna district and is in the process of setting up of a cement plant in the state's Damoh district.
The shares of India Cements closed at Rs 275 apiece at the BSE on October 10, which 0.11 percent higher as compared to the previous day's close.
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