India Resurgence Fund (IndiaRF), an India-focused investment platform promoted by Piramal Group and Bain Capital, has acquired 45.01% equity stake in Shree Digvijay Cement Company Limited (SDCCL) from True North Fund VI LLP.
True North invested in the company in November 2018.
SDCCL is listed on the National Stock Exchange and the Bombay Stock Exchange. IndiaRF has also announced an open offer for up to a 26% equity stake, which is awaiting approval from the Securities and Exchange Board of India (SEBI).
After completion of the transaction and the open offer, IndiaRF plans to hold a controlling stake in Shree Digvijay Cement.
IndiaRF, which is currently raising its second fund, manages assets and commitments of about $1.5 billion across sectors. Its investments focus on India-centric themes such as domestic consumption, exports, and core infrastructure and manufacturing.
“The Indian cement sector is poised for significant growth, backed by sustained government-led infrastructure spending and strong housing demand,” said Shantanu Nalavadi, Managing Director of IndiaRF, in a media statement.
“Given cement’s strong regional dynamics, this deal firmly positions us in Gujarat,” he added.
Established in November 1944, SDCCL manufactures cement at its plant in Digvijaygram (Sikka) in Gujarat’s Jamnagar district, with an installed capacity of 3.0 million tonnes per annum.
With cement demand at approximately 450 MTPA and projected 7-8% CAGR growth, the industry is undergoing significant consolidation. M&A has long been a defining feature of the sector, as leading players pursue greater scale and competitive advantage.
