Shree Digvijay Cement Co.Ltd has informed the Exchange about Transcript
SHREDIGCEM · price
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Shree Digvijay Cement has completed the integration of Hi-Bond Cement effective March 19, 2026 under a Brand Usage, Supply and Distribution Agreement (BDA), making them the third largest cement player in Gujarat with a combined capacity of 5.2 million tons. Under the deal, Digvijay buys cement from Hi-Bond at cost plus a fixed margin of INR500 per ton, expecting INR200-300 EBITDA per ton. The company guides to 70% capacity utilization in FY27 (3-3.5 million tons of volume), 8-10% Q4 volume growth, and price hikes of INR30-40 per bag. Total net debt rises to INR485 crores (INR132 cr existing + INR356 cr for Hi-Bond) at 8.7% interest, with annual repayment of INR24-25 crores. A call option on Hi-Bond's assets can be exercised at any time once milestones are met.
Positive: integration expands capacity to 5.2 million tons and market share to 9-10% in Gujarat, with management signaling margin improvement from price hikes and better product mix. Watch-outs: INR200/ton EBITDA hit on purchased clinker, INR356 cr new debt for BDA, and a new CEO search still pending.