Shriram EPC sells stake in SJCL

Shriram EPC (SEPC), a leading service provider of integrated design, engineering, procurement, construction and project management services, has finalized the sale of stake in Sree Jayajothi Cements (SJCL) to My Home Industries (MHIL), a 50:50 JV between CRH Pic., Ireland and My Home Group, Hyderabad. MHIL has valued SJCL at an enterprise value of Rs. 1,400 crore.

Proceeds from the transaction will be used primarily for debt reduction, in line with the SEPC's goal of improving its financial profile and strengthening its core business. This transaction will also result in the release of debt on SEPC's book which was undertaken on behalf of SJCL.

SJCL has a manufacturing cement facility at Kurnool, Andhra Pradesh with a cement manufacturing capacity of 3.2 million tonnes per annum. The acquisition will further strengthen MHIL's position in the South Indian cement market. MAPE Advisory Group was the advisor to the Sellers on the transaction.