New Delhi: As the company, with its headquarters in Kolkata, wishes to concentrate on its expansion plans, Shree Cement withdrew from the competition to purchase a 40-70% share in Sanghi Cement for an enterprise value of Rs 6000 crore. We’ll concentrate on our strategies for both brownfield and greenfield expansion. Prashant Bangur, vice chairman of Shree Cement, said, “In the current environment, we do not wish to submit a bid for Sanghi Cement. Shree Cement’s short-term focus will be on “own internal expansion”, he said without elaborating.
A debt of Rs 1800 crore is included in the enterprise value of Sanghi Cement. According to sources, the stake would have cost Shree Cement between Rs 1680-3024 crore, most of which would have been paid to the promoters. Sanghi Cement has a 6.1 MTPA manufacturing capacity and primarily serves Gujarat, Rajasthan, Maharashtra, and Madhya Pradesh western markets. Additionally, it owns a 143 MW captive power plant.
Sanghi Cement is the brand name of Sanghi Industries’ cement products. Sanghi Industries, listed on both BSE and NSE, had posted a net loss of Rs 325.70 crore for FY23 on revenues of Rs 928.36 crore. The company’s promoters hold a 72.72% stake and have pledged almost 99% of its shares. Sanghi Industries’ share price closed up 4.99% at Rs 88.35 on the BSE.
According to media reports, companies like UltraTech, Dalmia Bharat, JK Organisation, Nirma Group and JSW Cement were interested in bidding for the stake.
