New Delhi: Shree Digvijay Cement, a local cement firm based in Gujarat, is in focus today as its promoter, True North Fund, is looking to sell 50% of its majority stake to the India Resurgence Fund (IRF) backed by the Piramal Group and Bain Capital. This marks the exit of the Funds six year investment with the cement firm which sells its products under the ‘Kamal Cement’ brand name.
Following the announcement, the small cap firms’ shares are trading 3% lower, even as the deal triggers an open offer for its other shareholders.
IRF will pay Rs.85 per share, a 12% discount from the closing price for the controlling stake. Once done, this will result in an open offer for upto 3.85 crore equity shares- about 26% of the company’s capital. The offer price will be for Rs.92.2 per share- a 4% discount on the current price.
Once completed, IRF will take control of the company. Shree Digvijay Cement currently operates one plant in the Jamnagar district with a capacity of 1.5 MTPA.
True North had been seeking to exit the company for about a year, as per various reports. There were also speculations that the Adani Group was eyeing the company as it operates a captive seaport handling vessels with 3,000-5,000 DWT capacity. True North had bought the company from Brazilian cementmaker Votorantim Cimentos in 2018.
The company’s shares have been on a rally in the last five trading sessions, appreciating over 19% since. The company reported a 22.36% rise in net profit and a corresponding 10.81% rise in revenue in Q1 FY26, compared to the same period last year.
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