JSW Cement to absorb Shiva Cement in merger creating unified platform

JSW Cement Ltd has received board approval for the amalgamation of Shiva Cement into itself, marking a significant consolidation move within the JSW Group's cement operations. Under the scheme of arrangement, JSW Cement will issue five equity shares with a face value of Rs 10 for every 41 equity shares of face value Rs 2 held by Shiva Cement shareholders, establishing a clear conversion ratio for the transaction.

The merger is designed to establish a unified cement platform that will streamline management structures and unlock operational synergies across the combined entity. The consolidation is expected to deliver financial benefits and improve the overall efficiency of the cement business, according to the company's regulatory filing.

Completion of the transaction is contingent upon receiving necessary approvals from multiple regulatory authorities, including stock exchanges, the Securities and Exchange Board of India (SEBI), the National Company Law Tribunal (NCLT), and the Odisha Industrial Infrastructure Development Corporation. Shareholder and creditor approvals will also be required before the merger can proceed.

JSW Cement has indicated that the merger process is expected to conclude within 12 to 14 months, provided that regulatory approvals are received without significant delays. The company will need to navigate the multi-stage approval process involving both capital markets regulators and sectoral authorities before the merger can be formally completed.