New Delhi, Nov. 18 -- Cement maker Nuvoco Vistas Corp Ltd has agreed to acquire Gujarat-based captive power producer Vadraj Energy (Gujarat) Ltd from rival JSW Cement Ltd and asset management firm Alpha Alternatives Holdings Pvt Ltd for Rs 200 crore (around $23 million).
Of this, Rs 191.63 crore will go to JSW Cement and the remaining Rs 8.36 crore to Alpha Alternatives, stated an exchange filing from Nuvoco Vistas.
Vadraj Energy, which owns two power plants in Kutch and Surat in Gujarat, is a 100% subsidiary of Algebra Endeavour Pvt Ltd, which provides advisory services and is engaged in investment activities. Algebra is in turn owned by the JSW Cement and Alpha Alternatives.
Algebra was incorporated in November 2020. Following this transaction, it will become a wholly owned subsidiary of Nuvoco Vistas.
The acquisition is expected to help Nuvoco Vistas increase its captive power production capacity, along with improving its operational efficiency and cost management.
The Mumbai-listed Nuvoco Vistas has a market capitalization just shy of Rs 13,000 crore. In the last one year the counter has delivered a return of 8.8%.
Published by HT Digital Content Services with permission from VC Circle.