HeidelbergCement eyes GSCL
In a manner identical to a previous deal in which HeidelbergCement AG acquired Mysore Cement, the German major is close to acquiring the controlling stake in Gujarat Sidhee Cement Ltd (GSCL). As a precursor to the deal, GSCL has decided to increase its authorised capital to about three times from the current Rs 170 crore, involving 17 crore equity shares of Rs 10 each, to Rs 500 crore comprising 50 crore equity shares of Rs 10 each.
GSCL has a production capacity of about 1.2 million tonnes per annum (mtpa), which can be scaled up to 1.5 mtpa with a marginal investment. The company’s valuation is likely to be based at around $100 to $ 120 per tonne of cement, resulting in an enterprise value of around Rs 700 to Rs 800 crore. GSCL’s share closed at Rs. 24 on Friday.
Published under Cement News
