Shree Digvijay Cement Share Price Slips as Promoter Exits, IRF Steps In

Market Performance

Stock market today witnessed a sharp move in Shree Digvijay Cement share price, as the stock slipped over 3% in early trade on September 5. The decline came soon after the company confirmed a major promoter exit and stake transfer that will reshape its ownership structure.

So far in 2024, the stock has delivered 9.5% gains, but over the past year, it has corrected nearly 7%. With fresh developments, investor sentiment turned cautious, triggering profit booking in morning trade.

The Big Development – Promoter Stake Sale

The headline news revolves around True North Fund VI LLP, the promoter of Shree Digvijay Cement. After holding the business for nearly 6-7 years, True North has decided to sell a 50% stake in the company to India Resurgence Fund (IRF), backed by Bain Capital and Piramal Group.

• Transaction Size: ₹631 crore
• Stake on Sale: 50% of promoter holding
• Agreed Price: ₹85 per share (12% discount to last close)
• Open Offer Price: ₹92.2 per share (4% discount)

This sale will be followed by an open offer to acquire up to 3.85 crore equity shares, equating to 26% of the company’s share capital. Once the deal is completed, IRF will take control of Shree Digvijay Cement, while private equity player True North will step down as promoter.

Company Background & Journey

The exit of True North is significant. The PE fund had entered Shree Digvijay Cement back in 2018, when it acquired a 75% stake from Brazilian giant Votorantim Cimentos. Since then, True North has been steering operations, and this move signals a complete exit after more than half a decade.

New Distribution Agreement with Hi-Bond

Parallel to the stake sale, Shree Digvijay Cement has inked a 10-year brand usage, supply, and distribution agreement with Hi-Bond Cement.

Key highlights:

• Shree Digvijay Cement will have exclusive rights to distribute 100% of Hi-Bond’s cement output.
• The deal is expected to generate ₹600 crore annually, with potential adjustments year-on-year.
• As part of the arrangement, the company will place a refundable deposit of up to ₹400 crore.
• Shree Digvijay Cement will also nominate a director on Hi-Bond’s board.
• Hi-Bond has offered a call option allowing Shree Digvijay Cement to buy 100% stake in the company within 8 years, at fair market value.

This agreement not only ensures a long-term supply pipeline but also opens a strategic growth opportunity for the company.

Business Assets and Clarifications

Amid recent speculation, Shree Digvijay Cement clarified that reports linking Adani Group to a potential takeover of its port and plant assets are unfounded.

The company continues to operate its captive seaport, capable of handling 3,000–5,000 DWT vessels, used for both import and export operations. This remains a crucial strength in logistics and cost optimization.

Summary

To sum up, Shree Digvijay Cement share price fell after news of its promoter’s exit and stake transfer to IRF. The ₹631 crore transaction and the subsequent open offer will reshape the company’s ownership, bringing in Bain-Piramal-backed capital. Alongside, the Hi-Bond Cement agreement strengthens its long-term distribution and growth visibility.

While the stock has had a mixed run this year—up 9.5% year-to-date but down 7% over the past year—these structural changes mark the beginning of a new chapter for the cement maker.