JK Cement inks pact to acquire Toshali Cements

6 Jun 2023 , 03:17 PM

JK Cement Limited’s counter gained as much as 4% in Tuesday’s intraday trade following the company’s announcement to acquire a 100% stake in Toshali Cements.

At around 2.55 PM, JK Cement was trading 1.08% higher at Rs 3,243 against the previous close of Rs 3,208.40 on NSE. The counter hit an intraday high of Rs 3,324, so far.

The company announced that it has gained in-principal approval for signing a share purchase agreement with Toshali Cements.

Once the conditions precedent are fulfilled, the Board has authorized the Committee of Directors to take necessary actions. Upon completion of the stated transaction, Toshali will subsequently become a subsidiary of the company.

JK Cement will invest Rs 157 crore in the company. 

Currently, Toshali Cement operates two manufacturing plants: one is an integrated unit in Ampavalli, Odisha, with a clinker capacity of 0.33 MTPA and a grinding capacity of 0.198 MTPA, while the other facility is located in Choudwar, Odisha.

According to the regulatory filing, the acquisition will enable the company to broaden its presence in the Eastern Region, facilitating expansion in that particular area.

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