Shree Digvijay Cement Sees New Dawn as India Resurgence Fund Gets CCI Green Light

India Resurgence Fund (IRF), a Category II Alternative Investment Fund, has received official approval from the Competition Commission of India (CCI) for its acquisition of a controlling stake in Shree Digvijay Cement Company Limited. This marks a pivotal development in the Indian cement industry, with India Resurgence Fund set to acquire up to 50.10% of Shree Digvijay Cement’s equity from True North Fund VI LLP.

 

This deal includes several key structural agreements that will redefine the company’s market dynamics. Alongside the stake acquisition, Shree Digvijay Cement has secured a 10-year exclusive distribution agreement with Hi-Bond Cement, valued at around INR 600 crore annually. As per the agreement, Shree Digvijay Cement will provide a refundable deposit of up to INR 400 crore to Hi-Bond Cement and gain the right to nominate a director on Hi-Bond’s board. Additionally, an options agreement grants Shree Digvijay Cement the potential to acquire 100% of Hi-Bond Cement in the future.

 

Upon completion, India Resurgence Fund will assume control and will be designated as promoters of the company. This transaction is subject to regulatory conditions and will trigger a mandatory open offer to public shareholders as per SEBI regulations.

 

Notable Updates:

This landmark transaction is set to bolster Shree Digvijay Cement’s market position, enhance distribution capabilities, and potentially drive growth through its strategic alliance with Hi-Bond Cement.

 

Sources: NSE Circular, Competition Commission of India, BSE Limited, SEBI filings, Axis Capital Limited announcements.