JK Lakshmi Cement Receives Go-Ahead from BSE and NSE for Amalgamation Plan
JK Lakshmi Cement has received approval from leading stock exchanges, the NSE and BSE, for its plan to merge three of its subsidiaries into the company. The amalgamation involves Udaipur Cement Works, Hansdeep Industries and Trading, and Hidrive Developers and Industries, with the goal of simplifying the company’s structure and creating a more commercially meaningful entity focused on cement and cement products.
As per the filing made with BSE on 1 January 2025, the exchanges issued their Observation Letters, confirming that there were no adverse observations or objections regarding the proposed scheme. This approval follows the approval of the merger by JK Lakshmi Cement’s board on 31 July 2024. As part of the merger terms, shareholders of Udaipur Cement Works Ltd (UCWL) will receive four shares of JK Lakshmi Cement for every 100 shares they hold in the company. The merger is expected to streamline operations and improve operational efficiencies in the cement sector.
The company’s combined capacity for FY24 stands at 16.5 million tonnes per annum (MTPA), and its revenue for the same year was ₹6,319.77 crore. UCWL, which is set to be merged, reported a revenue of ₹1,163.59 crore in FY24. JK Lakshmi Cement aims to expand its production capacity to 30 MTPA by 2030 through brownfield and greenfield expansion projects. The company currently has ongoing expansion projects totaling 10.80 MTPA, set for completion by FY27. The merger with these subsidiaries is expected to enhance JK Lakshmi Cement’s position in the industry and boost its growth prospects.
