JSW Cement Moves to Merge Shiva Cement in a Deal That Strengthens Its Clinker Supply
New Delhi | September 30, 2026: JSW Cement has approved the merger of its 66.23%-owned subsidiary Shiva Cement, a move aimed at bringing clinker manufacturing directly into its cement operations and simplifying its corporate structure. Under the proposed arrangement, Shiva Cement’s public shareholders will receive five JSW Cement shares for every 41 shares they hold.
The merger could strengthen JSW Cement’s control over a key raw material used in cement production. However, the scheme is still subject to shareholder and regulatory approvals before it can take effect.
What the Merger Means for Shareholders
Under the proposed share-exchange ratio, eligible public shareholders of Shiva Cement will receive five fully paid-up equity shares of JSW Cement, each with a face value of ₹10, for every 41 Shiva Cement shares held, each with a face value of ₹2.
JSW Cement’s existing 66.23% equity holding in Shiva Cement will be cancelled under the scheme, with no new shares issued against it. The company also holds all of Shiva Cement’s optionally convertible cumulative redeemable preference shares, comprising one crore shares with an aggregate face value of ₹100 crore.
Once the merger becomes effective, Shiva Cement’s public shareholders will become direct shareholders of JSW Cement. The transaction involves a share exchange rather than a cash payout.
Why JSW Cement Is Bringing Shiva Cement Into Its Business
Shiva Cement operates a clinker manufacturing facility at Sundargarh in Odisha, with an annual capacity of 1.32 million tonnes.
Clinker is a key intermediate product used in cement manufacturing. By integrating Shiva Cement’s facility into its own operations, JSW Cement aims to reduce its dependence on external clinker procurement and improve supply-chain efficiency.
The company expects the consolidation to support operational and financial synergies by bringing manufacturing operations and business resources under a single corporate structure.
A Simpler Corporate Structure
The merger is also intended to reduce the complexity of operating two separate companies within the same group.
According to JSW Cement, combining the businesses could help streamline management, administration and compliance processes while improving coordination between clinker manufacturing and cement production.
The proposed consolidation may also reduce duplication in corporate functions and make it easier to manage the businesses as an integrated operation.
What the Share-Swap Ratio Means
The 5:41 share-exchange ratio determines how many JSW Cement shares eligible Shiva Cement shareholders will receive when the scheme becomes effective.
For public shareholders, the arrangement offers a direct ownership interest in JSW Cement instead of continued investment in a separate subsidiary. The value of the shares received will depend on JSW Cement’s market price when the shares are allotted and subsequently traded.
The ratio was assessed by independent valuers, PwC Business Consulting Services and BDO Valuation Advisory. JM Financial acted as financial adviser, while Price Waterhouse & Co served as tax and regulatory adviser.
Approvals Still Needed Before Completion
Although both the strategic rationale and share-exchange terms have been approved by JSW Cement’s board, the merger is not yet complete.
The scheme remains subject to the required shareholder and regulatory approvals. The companies will need to complete the applicable formalities before the amalgamation can take effect.
Until then, Shiva Cement remains a separate listed company, and the proposed share exchange has not yet been implemented.
What the Merger Could Mean for Cement Operations
The integration of Shiva Cement’s clinker facility could give JSW Cement greater coordination over an important part of its production chain. Reduced reliance on external procurement may also help the company manage supply more efficiently.
However, the actual benefits will depend on how effectively the facility is integrated and how the combined operations perform after the merger. The proposed transaction marks a structural change, while its operational and financial impact will become clearer after implementation.