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The Competition Commission of India (CCI) approved a multi-step transaction in the cement sector involving India Resurgence Fund (IndiaRF), Shree Digvijay Cement Company (Digvijay) and Hi-Bond Cement (India) Pvt Ltd (Hi-Bond). IndiaRF will acquire a stake in Digvijay, which in turn will purchase shareholding in Hi-Bond. The two cement companies will also enter a long-term business arrangement. IndiaRF is a SEBI-registered Category II fund managed jointly by Piramal Group and Bain Capital Special Situations. The approval ensures compliance with competition regulations and aims to maintain a fair market environment.
The CCI granted clearance for a complex transaction involving IndiaRF, Digvijay and Hi-Bond. The arrangement has three interconnected elements: IndiaRF acquiring a stake in Digvijay, Digvijay acquiring shareholding in Hi-Bond, and both companies entering a long-term business cooperation. A filing with the regulator explained that the combination 'envisages the acquisition of shareholding by IndiaRF in Digvijay, the proposed long-term business arrangement between Hi-Bond and Digvijay, and the proposed acquisition of shareholding by Digvijay in Hi-Bond.' Advertisement
IndiaRF, a SEBI-registered Category II alternative investment fund, is equally owned by the Piramal Group and Bain Capital's Special Situations team. Both Digvijay and Hi-Bond manufacture and sell grey cement. Prior reports had noted that the companies had been exploring strategic collaboration, including potential exclusive distribution arrangements and other operational tie-ups, which are now formalized under this structure.
The CCI also approved a separate merger in the offshore drilling sector between ADES International Cayman and Shelf Drilling Ltd. This demonstrates the regulator's broader role in monitoring large combinations to prevent anti-competitive practices. Deals of this nature, beyond certain thresholds, require regulatory approval to ensure fair competition and to safeguard market integrity.
The deal positions Digvijay and Hi-Bond to strengthen their market presence while providing IndiaRF with a structured entry into the cement manufacturing sector. The long-term business arrangement between the two companies, combined with the shareholding transfers, will likely shape operational synergies and influence the grey cement market dynamics in India.
Source PTI
5th Jun, 2025
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