JSW Cement to acquire Madhya Pradesh business of India Cements for Rs 477 crore

11 Oct 2022 , 08:28 AM

Monday marked the end of weeks of rumours when India Cements said it has reached an agreement with JSW Cement to sell its Madhya Pradesh subsidiary for close to Rs477 crores.

According to media reports, India Cements was in negotiations with a number of parties to sell the Madhya Pradesh project. In addition to JSW Group, UltraTech Cement and Adani Group were vying for the facility.

The Panna area of Madhya Pradesh is home to limestone-bearing land that is owned by Springway Mining, a wholly-owned subsidiary of India Cements, which is also building a cement plant there.

According to the terms of the agreement, India Cements has already received Rs374 crores from JSW Cement. The remaining sum would be paid out by December after a number of requirements have been met, the former stated in a statement with the stock exchange.

India Cements did not go into detail about how the sale proceeds would be used, but reports indicated that they would be used to pay down the group’s debt.

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