JSW Cement to Merge With Shiva Cement, Creating Unified Cement Platform

JSW Cement has proposed a merger with its listed subsidiary Shiva Cement as the JSW Group company looks to bring its cement operations under a single platform and simplify the corporate structure.

The proposed transaction will combine the two businesses and is expected to create operational, financial and management synergies. The companies said the merger would also help align their financial structures and strengthen backward integration within the cement business.

Under the proposed scheme of arrangement, JSW Cement will issue five equity shares of ₹10 each for every 41 equity shares of ₹2 each held in Shiva Cement by shareholders other than JSW Cement.

The merger is subject to several regulatory and corporate approvals. These include clearances from stock exchanges, the Securities and Exchange Board of India (SEBI), the National Company Law Tribunal (NCLT), Odisha Industrial Infrastructure Development Corporation and other applicable authorities. Approvals from the respective shareholders and creditors may also be required.

The transaction is expected to take between 12 and 14 months to complete, depending on the timing of the required approvals.

For Shiva Cement’s public shareholders, the proposed merger would provide an opportunity to hold shares in JSW Cement, a larger listed cement company. JSW Cement said the transaction would also simplify its corporate structure while enabling greater integration across its operations.

JSW Cement currently has cement grinding capacity of 24.10 million tonnes per annum and clinkerisation capacity of 9.74 million tonnes per annum. Its operations include nine plants across India, comprising integrated plants, a clinker unit and grinding units.

The company’s manufacturing footprint extends across Andhra Pradesh, Karnataka, Tamil Nadu, Maharashtra, West Bengal, Odisha and Rajasthan. It also operates a clinker unit in the UAE through JSW Cement FZC, its joint venture.

The proposed merger comes as JSW Cement continues to build scale across its manufacturing network. The integration with Shiva Cement is expected to bring the Odisha operations more closely within the group’s broader cement platform.

The transaction will remain subject to the prescribed approval process before implementation. Until the necessary clearances are received, both companies will continue to operate under the existing corporate structure.

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Excerpt:
JSW Cement has proposed merging with listed subsidiary Shiva Cement to create a unified cement platform, with the transaction expected to unlock operational and financial synergies.

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