Synopsis:
Promoter, True North Fund VI LLP, to sell 50.1 percent stake in Shree Digvijay Cement to IRF Entities via Rs. 631 crore deal; triggers open offer, plus 10-year Rs. 600 crore Hi-Bond distribution agreement.
During Friday’s trading session, shares of a company engaged in the manufacturing and selling of cement moved down by nearly 5 percent on BSE, after the company’s promoter agreed to offload up to a 50 percent stake, raising fresh capital and triggering an open offer.
At 11:21 a.m., the shares of Shree Digvijay Cement Company Limited were trading in the red at Rs. 92.68 on BSE, down by around 4 percent, as against its previous closing price of Rs. 96.26, with a market cap of Rs. 1,370.4 crores. The stock has delivered negative returns of around 8 percent in the last one year, but has gained by over 11 percent in the last one month.
What’s the News
As per the latest exchange filings, the promoter of Shree Digvijay Cement Company Limited, True North Fund VI LLP, has entered into a Share Purchase Agreement (SPA) with IRF Entities for the sale of up to 7,42,71,009 equity shares, representing 50.1 percent of the company. The India Resurgence Fund (IRF) Entities collectively include IRF – Scheme 1, IRF 2 – Scheme 2, and IRF 2 – Scheme 4.
As a result of this SPA Transaction, IRF Entities are obligated to make a mandatory tender offer to the company’s public shareholders. The promoter’s stake sale will be executed in two tranches at Rs. 85 per share, translating to a total transaction value of ~Rs. 631 crore.
India Resurgence Fund (IndiaRF) is a leading India-focused distressed and special situations investment platform, sponsored by Piramal Enterprises Limited and Bain Capital Credit. IRF is engaged in providing long-term, risk-adjusted returns to investors primarily by making distressed-to-control investments in Indian companies across various sectors.
The open offer will cover up to 3.85 crore equity shares, equivalent to 26 percent of Shree Digvijay Cement’s share capital. Upon completion of the SPA transaction, the acquirers will gain control of the company, and True North will cease to be its promoter. This transaction has also triggered an open offer for an additional 26 percent stake from public shareholders, with the open offer price set at Rs. 92 per share.
Separately, Shree Digvijay Cement has entered into a 10-year exclusive cement distribution agreement with Hi-Bond Cement, valued at Rs. 600 crore annually. As part of the deal, Shree Digvijay will provide Hi-Bond with a refundable deposit of Rs. 400 crore.
Additionally, Shree Digvijay Cement will hold a call option to acquire a 100 percent stake in Hi-Bond within the next eight years, as per the exchange filing. Currently, Shree Digvijay operates a 3 MTPA plant in Jamnagar (Gujarat), while Hi-Bond runs a 3.2 MTPA unit in Rajkot, located about 90 kilometres away. As of June 2025 shareholding pattern, the promoter True North Fund VI LLP held a 54.66 percent stake in Shree Digvijay Cement Company Limited.
Financials & more
Shree Digvijay Cement reported a marginal growth in its revenue from operations, showing a year-on-year increase of around 11 percent from Rs. 177 crores in Q1 FY25 to Rs. 196 crores in Q1 FY26. Likewise, its net profit increased during the same period from Rs. 11 crores to Rs. 14 crores, representing a significant rise of about 27 percent YoY.
Shree Digvijay Cement Company Limited is principally engaged in the business of manufacturing and selling of cement. The company has one manufacturing facility at Sikka, Jamnagar (Gujarat) with an installed capacity of 15 lacs MT per annum, and mainly caters to the domestic market.
Written by Shivani Singh
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