India Cements on Monday said it has entered into a pact to sell its entire stake in Springway Mining Private Limited (SMPL) to JSW Cement, the company said in a regulatory filing on Monday. The company ​will disinvest its entire stake for Rs 476.87 crore.

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SMPL owns limestone-bearing land in the Panna district in Madhya Pradesh and is in the process of setting up a cement plant in the Damoh. Following the divestment, SMPL ceased to be the wholly owned subsidiary of ICL, according to the filing.

The deal is expected to be completed by the end of this year.

“The company has entered into a Share Purchase Agreement on October 10, 2022, with JSW Cement Limited (Buyer) and divested the entire shareholdings held by it in SMPL, for a total consideration of Rs 476.87 crore," ICL said.

Out of the total consideration of Rs 476.87 crore, ICL received Rs 373.87 crore from JSW Cement. The balance amount of Rs 103 crore will be paid on or before December 31, 2022. The deal is expected to be completed by the end of this year.

"Upon completion of certain conditions of the Share Purchase Agreement, the buyer will release the balance amount of Rs 103 crore on or before December 31, 2022," regulatory filing added.

JSW Cement, part of the diversified USD 22 billion JSW Group, has a current capacity of 17 million tonnes per annum (MTPA). It plans to have 25 MTPA production capacity by 2023 and is driving investments to achieve this goal. South-based ICL has a total capacity of 15.5 MTPA.

The shares of India Cements closed at Rs 275 apiece at the BSE on October 10, which was 0.11 per cent higher as compared to the previous day's close. On NSE, the stock closed at 276.50, which was 0.62 per cent higher.