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NCLT approves Sagar Cements' acquisition of Andhra Cements

NCLT approves Sagar Cements' acquisition of Andhra Cements
17 February 2023


The Amravati bench of the National Company Law Tribunal (NCLT) has approved Sagar Cements' proposal to acquire Andhra Cements for INR9220m (US$111.3m). On 16 February the Sagar Cements board approved a plan to nearly double the capacity of Andhra Cements to 3Mta with a capital outlay of INR4680m, according to Money Control.

Of the INR9220m proposed acquisition cost, Sagar Cements plans to raise a debt of INR6000m and equity of INR3220m. The acquisition gives Sagar Cements a 95 per cent stake in Andhra Cements with the public holding the remaining five per cent.

Andhra Cements operates two cement plants – the 1Mta Durga Cement Works in Dachepalli and the 0.6Mta Visaka Cement Works in Vishakapatnam – both of which are currently closed.

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Tagged Under: Sagar Cements Andhra Cements India Indian subcontinent Acquisition