India Cements To Sell Springway Mining To JSW Cement  

In Tuesday's intraday trade, shares of India Cements fell 6% to Rs 258 on the BSE due to profit-booking after the firm said it had sold its Madhya Pradesh limestone mine, land, and equipment to Sajjan Jindal-owned JSW Cement for Rs 477 crore.

In a filing with the exchange, India Cements stated that it had reached a deal with JSW Cement to purchase its shares, and that it had sold all of its shares in Springway Mining Private Limited (SMPL) for Rs 476.87 crore. As a result, SMPL is no longer the company's wholly owned subsidiary.

In Madhya Pradesh, SMPL is developing a cement plant in the Gaisabad Tehsil of the Damoh District and has limestone-bearing land in Pawai Tehsil, Panna District.

With the acquisition of land, India Cements began operations at the 3 mtpa plant in MP last year. Limestone, a crucial raw resource used to create cement, is also connected to the project in the past.

India Cements had stated in May that it was willing to sell some of its land in order to reduce debt. The company had a net debt of Rs 3,039 crore as of March 31 of the current year. In comparison to the prior year, when net debt stood at Rs 2,996 crore, this represented an increase of 1.43 percent.

The stock was down 5% at Rs 262.35 at 9:45 AM, while the S&P BSE Sensex was down 0.31 % at same time. Despite today's dip, India Cements has outperformed the market over the last month, rising 13% compared to the benchmark index's decline of 3.5%. It has gained 55% over the last three months compared to Sensex's 6% increase.