Shree Digvijay Cement Shares Slip 4% as Open Offer Triggers Investor Caution

Mumbai, September 5, 2025 – The shares of Shree Digvijay Cement Co. Ltd (NSE: SHREDIGCEM, BSE: 502180) plummeted by over 4% on Friday after the promoter agreed to divest the majority stake. True North Fund VI LLP and True North Managers LLP have agreed to sell their 50.10% stake in Shree Digvijay Cement Company to India Resurgence Fund (Schemes 1, 2, and 4), managed by Indiarf.

The deal is all set to trigger and open the offer obligation. The board has approved the transaction and now awaits regulatory clearance from the CCI (Competition Commission of India). The offer price was announced at ₹92.20 per share. It is higher than the promoter’s exit price of ₹85 per share (but around the existing market price).

Stock Price Movement

The market reacted sharply to the update, with stock prices falling by more than 4% within the first couple of trading hours on Monday. At 11:45 AM, the stock traded at ₹92.33 (4.09% down from the previous day’s closing). Today’s high so far has been ₹98.58 and a low of ₹91.71. Despite today’s correction, the stock has surged more than 11.36% in the past month. The P/E ratio of the company is 51.48 compared to the industrial average of 46.47.

Open Offer and Promoter Exit

India Resurgence Fund (IndiaRF) has signed a share purchase agreement on September 4, 2025, to acquire up to 50.1% stake (7.42 crore shares) in Shree Digvijay Cement from promoter True North Fund VI LLP. The open offer covers 3.85 crore shares at ₹92.20 each, valuing the deal at up to ₹631.3 crore. True North’s holding will reduce from 54.52% to as low as 4.42%.

Reasons for the Market Reaction

The stock witnessed a massive profit booking during the early hours on Friday after the announcement. The open offer price of ₹92.20 did not promise a critical upward movement, and the promoter’s exit caused short-term stability concerns about the company. Adding to the pressure, the stock had recently hit a 52-week high of ₹107.70 on August 25, 2025, leaving it vulnerable to corrections amid heightened volatility.

REF:https://nsearchives.nseindia.com/corporate/tchari_04092025214104_SHREE.pdf

https://nsearchives.nseindia.com/corporate/kjana_05092025081622_ShreeDigvijayCementCompanyLimited.pdf

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