Shiva Cements hits 1-year high as JSW Cement increases stakes to 53.5%

Cement manufacturing major Shiva Cement boomed in the stock market with the news of the leading cement company JSW Cement increasing its stake by over 50 per cent in the company.

Shiva Cement soared to its 52-week high at Rs 33.50, increasing by about 20 per cent on the bourses in intraday trade on Tuesday, July 4.

JSW Cement bought 18,91,533 shares of Shiva Cement at Rs 23.86 on the BSE on July 3, 2017. While in the previous four trading sessions, JSW Cement acquired 61,34,697 equity shares or 4.12 per cent in Shiva Cement. With the acquisition of these shares, JSW Cement’s holdings in the company increased from 49.40 per cent to 53.50 per cent in the company. 

In the month of January, JSW Cement had bought 35.62 per cent of the promoter’s shareholdings in Shiva Cement, preceding an open offer for 32 per cent equity. The share price of the company in the stock market had scaled to a 9-year high following the stake sale deal. In the past one year, the share prices of the company have witnessed an increase of about 450 per cent.   

On July 4, the major cement stocks were trading positive with Andhra Cements, Saurashtra Cement and Ramco Cement trading with over 2 per cent gains on the bourses.

On the whole, the cement industry is expected to grow at 6-7 per cent in the on-going fiscal year as an effect of the government’s focus on infrastructure, affordable housing and roads, coupled with the implementation of GST.