JSW Cement to merge Shiva Cement into itself

Mumbai-based JSW Cement is to merge its fellow listed group company Shiva Cement with itself. The two firms would merge in a share swap ratio of 5:41, where JSW Cement will issue 5 equity shares of face value INR 10 for every 41 equity shares of face value INR 2 held by shareholders in Shiva Cement. The transaction is expected to be completed within 12 to 14 months.JM Financial Limited acted as the exclusive financial advisor. Price Waterhouse & Co LLP acted as the tax & regulatory advisor. PwC Business Consulting Services LLP and BDO Valuation Advisory LLP acted as the independent registered valuers for providing the share exchange ratio report to the Boards of JSW Cement and Shiva Cement. SBI Capital Markets Limited and DAM Capital Advisors Limited provided fairness opinion on share exchange ratio to the Board of JSW Cement and Shiva Cement respectively.JSW Cement currently holds a 66.23% stake in the firm. The company operates a cement grinding capacity of 24.10 million tonnes per annum (MTPA) and a clinkerisation capacity of 9.74 MTPA. Shiva Cement maintains a clinker facility that will support the backward integration of the unified entity.The firm plans to use the merger to unlock operational and financial synergies, such as pooling managerial, technical, and marketing resources to drive efficiency. The integration is also expected to lower financing costs, eliminate inter-company guarantees, and reduce administrative and compliance requirements.