Sagar Cements Ltd will acquire a 100 per cent stake in Odisha-based Jajpur Cements Private Ltd (JCPL) besides 65 per cent stake in Indore-based Satguru Cements Private Ltd (SCPL).
The board of directors of the Hyderabad-based company had approved proposals in this regard at a meeting held on Wednesday.
As per the proposal, Sagar Cements will invest ₹150 crore in SCPL to set up a green field cements manufacturing plant of one million tonne capacity along with a waste heat recovery power plant at ₹426 crore.
Sagar Cements will be holding 65 per cent in the equity share capital of SCPL on completion of these projects. It will also invest ₹108 crore in JCPL in a phased manner to acquire 100 per cent shareholding in it and set up a green field grinding unit of 1.5 million tonnes in Jajpur at ₹308 crore.
Both the projects are aimed to be completed by March, 2021. This will extend Sagar’s market presence in newer regions of central and eastern parts of the country, the company said in a release.
Funding
To fund investments and meet other general coporate investments, Sagar Cements will issue 31,00,000 convertible warrants at nearly ₹725 each on a preferential basis to entities belonging to promoter and non-promoter groups in accordance with Sebi (CDR) Regulations 2018.
Sagar Cements’ scrip lost 1.05 per cent on the Bombay Stock Exchange on Wednesday to end at ₹674.