JSW Cement Announces Shiva Cement Merger To Unite Business; Share Swap In Focus

JSW Cement on Wednesday announced a scheme to merge its listed subsidiary Shiva Cement with itself, bringing the two businesses under a single cement platform. Under the proposed arrangement, JSW Cement will issue five ₹10 equity shares for every 41 equity shares (face value of ₹2 each) of Shiva Cement held by shareholders other than JSW Cement.

The boards of both companies have approved the scheme. The merger is expected to take 12–14 months, subject to 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 other authorities, as well as shareholders and creditors.

JSW Cement shares closed at ₹113.30, up 0.64%, while the Shiva Cement share price fell 8.18% to ₹13.69 on 30 September.

Why Is JSW Cement Merging Shiva Cement?

Shiva Cement operates a clinker manufacturing facility in Odisha. In FY26, it commissioned a 1 million tonne per annum (mtpa) cement grinding unit at Sambalpur, Odisha, through a commercial arrangement with Bhushan Power and Steel.

JSW Cement said the consolidation will bring together its financial, managerial, technical, distribution and marketing resources. It also expects the move to reduce duplication in administration and compliance.

A key part of the plan is Shiva Cement's clinker manufacturing facility. JSW Cement said bringing the asset into the combined structure could strengthen backward integration, reduce its reliance on external clinker procurement and improve supply-chain efficiency.

The company also expects the merger to provide greater funding flexibility, potentially lower financing costs and remove inter-company guarantees.

JSW Cement acquired a controlling stake in Shiva Cement through a series of transactions that began in January 2017.

What Will Shiva Cement Shareholders Get?

Under the scheme, public shareholders of Shiva Cement will receive shares directly in JSW Cement based on the approved swap ratio. The company said this would give them exposure to a larger listed entity with a diversified institutional investor base.

The transaction will also result in what JSW Cement described as the “right-sizing” of the financial statements of the two companies.

How Large Is JSW Cement's Existing Capacity?

JSW Cement currently has 24.10 MTPA of cement grinding capacity and 9.74 MTPA of clinkerisation capacity, according to the company.

Its India operations comprise nine plants: two integrated units, one clinker unit and six grinding units. The proposed merger would bring Shiva Cement into this structure, creating a single platform for the businesses.

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