India Resurgence Fund Acquires Major Stake in Shree Digvijay Cement

India Resurgence Fund (IndiaRF) has acquired a 45.01% equity stake in Shree Digvijay Cement Company Limited from True North Fund VI LLP for up to INR 579 crores. IndiaRF, partnered with Piramal Group and Bain Capital, plans to increase its control over SDCCL with a pending open offer. SDCCL, with a 3.0 MTPA production capacity, aims to dominate Gujarat's cement market through strategic alliances.

India Resurgence Fund (IndiaRF), a major investment platform backed by the Piramal Group and Bain Capital, has announced the acquisition of a 45.01% equity stake in Shree Digvijay Cement Company Limited (SDCCL). The stake was purchased from True North Fund VI LLP for a maximum consideration of INR 579 crores. This acquisition aligns with IndiaRF's strategy to expand its control and influence in the cement industry.

Following the transaction, IndiaRF has launched an open offer for an additional 26% equity stake in SDCCL, awaiting approval from the Securities and Exchange Board of India (SEBI). If successful, this will enable IndiaRF to secure a controlling interest in the company. Shree Digvijay Cement, listed on both NSE and BSE, is strengthening its market position in Gujarat through a strategic partnership with Hi-Bond Cement, enhancing its production capacity to 5.2 MTPA.

Shantanu Nalavadi, Managing Director of IndiaRF, emphasized the potential for growth in the Indian cement sector, driven by government infrastructure projects and housing demand. With a foothold in Gujarat, IndiaRF aims to leverage its financial expertise to upscale operations and broaden market reach. Stakeholders view this move as a stepping stone to significant regional growth and consolidation in the competitive cement market.

(With inputs from agencies.)