JSW Cement Approves Amalgamation Scheme to Merge Subsidiary Shiva Cement
Mumbai, October 1, 2026: The Board of Directors of JSW Cement Limited and its listed subsidiary, Shiva Cement Limited, have approved a scheme of arrangement involving the amalgamation of Shiva Cement into JSW Cement. The consolidation aims to create a single unified cement platform designed to unlock operational, financial, and management synergies across both entities, JSW Cement said in a press release.
Under the terms of the proposed scheme, JSW Cement will issue 5 equity shares of face value Rs 10 each for every 41 equity shares of face value Rs 2 each held in Shiva Cement to public shareholders. The amalgamation will enable Shiva Cement shareholders to hold direct equity in a larger, more liquid entity with a diversified institutional investor base. Additionally, the merger will lead to a right-sizing of the financial statements of both involved companies.
The key strategic rationale behind the amalgamation includes pooling technical, financial, and distribution resources to enhance supply chain efficiency. It also provides backward integration through Shiva Cement’s clinker facility, reducing reliance on external procurement. Financially, the structure is intended to improve funding flexibility, lower borrowing costs, eliminate inter-company guarantees, and reduce administrative and compliance duplications.
The completion of the transaction is expected within 12 to 14 months, subject to necessary approvals from the Stock Exchanges, the Securities and Exchange Board of India (SEBI), the National Company Law Tribunal (NCLT), the Odisha Industrial Infrastructure Development Corporation, and respective shareholders and creditors.
Nilesh Narwekar, CEO of JSW Cement, said, “The proposed merger is a strategic step towards creating a more integrated and efficient business. It will unlock operational and financial synergies, strengthen backward integration, and simplify our corporate structure. Importantly, it will enable Shiva Cement’s public shareholders to participate directly in the growth of a larger and more liquid listed entity.”
For the transaction, JM Financial Limited served as the exclusive financial advisor, while Price Waterhouse & Co LLP acted as the tax and regulatory advisor. Independent valuation reports were provided by PwC Business Consulting Services LLP and BDO Valuation Advisory LLP, with fairness opinions issued by SBI Capital Markets Limited for JSW Cement and DAM Capital Advisors Limited for Shiva Cement.
