Lawstreet Journal

Emami Group To Sell Cement Company To Nirma Group For Rs. 5,500 Crores

Lawstreet Journal 8 Feb 2020 7:32pm

Image courtesy: Lawstreet Journal Business Emami Group To Sell Cement Company To Nirma Group For Rs. 5,500 Crores

On February 7, 2020 Emami Group, a Kolkata based diversified conglomerate, announced the sale of its cement business to Nuvoco Vista Group, which is a part of the Nirma Group. The group has decided to divest 100 per cent equity stake in Emami Group for an enterprise value of Rs. 5,500 crores. The Cement Company has a debt within the margin of Rs. 2000-2,200 crores and loans against shares worth thousands of crores. The move has been undertaken by Emami Group with the intention of becoming debt free. This is not the first instance of such a sale occurring in the India  cement industry. Debt ridden corporates have sold their cement businesses in the past to repay lenders. Reliance Infrastructure Ltd sold its cement assets to Birla Corp in 2016 while UltraTech had acquired the cement business of Jaypee Group. Emami Cement Ltd. runs an integrated cement plant and three grinding units with a capacity of 8.3 million tonnes per annum (mtpa). Manish Goenka, Director, Emami Group, responded about the agreement, “the transaction was an important step in the group’s stated objective of becoming debt-free”.

Aditya Agarwal, the director, Emami Group, said with this deal, “the promoters' pledged shares would come down”. After adjusting the Emami Cement sell to Nirma Group, the promoter-level debt approximately is Rs. 600 crores. The Group did try to trim (off) the debt by various ways and last year, the promoters had sold off 10 per cent of stake in Emami for Rs. 1,230 crores to… Continue Reading...


Tagged: Emami Group   Nirma Group  
Disclaimer: SoOLEGAL in Media collaboration with Lawstreet Journal. SoOLEGAL take no responsbility for the content provided by Lawstreet Journal. For any discrepancies Contact Lawstreet Journal.
Did you find this write up useful? YES 0 NO 0
×

C2RMTo Know More

Something Awesome Is In The Work

0

DAYS

0

HOURS

0

MINUTES

0

SECONDS

Sign-up and we will notify you of our launch.
We’ll also give some discount for your effort :)

* We won’t use your email for spam, just to notify you of our launch.
×

SAARTHTo Know More

Launching Soon : SAARTH, your complete client, case, practise & document management SAAS application with direct client chat feature.

If you want to know more give us a Call at :+91 98109 29455 or Mail info@soolegal.com