India Cements, NSE: INDIACEM, stock dropped on Tuesday as investors were unimpressed by the company's decision to sell a non-core asset. The bearish sentiment in the counter came on account of the company's announcement to divest its entire stake in wholly-owned subsidiary Springway Mining Private Ltd (SMPL) to JSW Cement. At 11 AM, the stock was quoting a price of Rs 260 apiece on the NSE, down by nearly 5.50 per cent.

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According to an exchange filing by India Cements, it has divested entire stake in SMPL to JSW Cement for Rs 476.87 crore. JSW Cement is a subsidiary of industrialist Sajjan Jindal-controlled JSW Group.

Of the total consideration, India Cements has already received Rs 373.87 crore, according to the filing. It will receive the remaining Rs 103 crore on/before December 31, 2022, following completion of certain conditions.

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," India Cements said in the filing yesterday.

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.

India Cements stock has delivered a stellar return of around 20 per cent in the past month while around 30 per cent year to date. The 52-week range of India Cements stock is Rs 298.95 - Rs 145.45.

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