Shree Digvijay Cement Company Limited has announced a series of strategic moves aimed at expanding its financial capabilities and market presence. The company has issued a postal ballot notice seeking shareholder approval for three special resolutions that could significantly impact its future operations and growth potential.

Increased Borrowing Powers

The cement manufacturer is proposing to increase its borrowing powers from the current INR 500.00 crores to INR 750.00 crores. This substantial increase is primarily driven by the company's need to fund a distribution agreement with Hi-Bond Cement (India) Private Limited.

Distribution Agreement and Refundable Deposit

Shree Digvijay Cement has entered into a distribution agreement with Hi-Bond Cement, which grants the company exclusive long-term distribution rights for Hi-Bond's cement products. The agreement, valued at approximately INR 600.00 crores, requires Shree Digvijay to provide a refundable deposit of up to INR 400.00 crores to Hi-Bond.

Current Financial Position

The company's financial snapshot reveals:

• Currently sanctioned borrowings: INR 300.00 crores
• Utilized borrowings: INR 196.00 crores

Creation of Charges on Company Assets

To secure the proposed increased borrowings, Shree Digvijay is also seeking approval to create charges on the company's assets. This move is essential to facilitate the new credit arrangements necessary for funding the distribution agreement and future growth initiatives.

Expansion of Investment Limits

The third special resolution proposes to expand the company's investment limits to INR 1,200.00 crores under Section 186 of the Companies Act. This increase is aimed at providing greater financial flexibility and enabling optimal financial structuring for future investments and financial assistance.

Options Agreement with Hi-Bond Cement

In addition to the distribution agreement, Shree Digvijay has approved an options agreement that provides the company with the potential to acquire 100% equity shares of Hi-Bond Cement within eight years. This strategic move could lead to complete control over Hi-Bond's assets, liabilities, and operations in the future.

Voting Process

Shareholders will have the opportunity to vote on these resolutions through an e-voting process:

• E-voting start date: September 19, 2025, at 9:00 A.M. (IST)
• E-voting end date: October 18, 2025, at 5:00 P.M. (IST)
• Results announcement: By October 20, 2025

These proposed changes represent significant strategic moves for Shree Digvijay Cement, potentially enhancing its market presence, distribution capabilities, and financial flexibility. Shareholders' approval of these resolutions could mark a new chapter in the company's growth trajectory in the competitive cement industry.

Shree Digvijay Cement Company has released its audited financial results for the fiscal year ending March 31, 2025, revealing a mixed performance with declining annual figures but showing signs of improvement in the latest quarter.

Annual Performance

The cement manufacturer reported a decrease in its annual financial metrics:

The significant decline in EBITDA and profit after tax indicates challenging market conditions faced by the company during the fiscal year.

Quarterly Improvement

Despite the annual downturn, Shree Digvijay Cement showed signs of recovery in its most recent quarter:

• Sales volume increased by 10% quarter-on-quarter, reaching 3.94 lacs tons.

This uptick in sales volume suggests a potential turnaround in the company's operational performance.

Dividend Announcement

In a move that may please shareholders, the Board of Directors has recommended a dividend:

• Dividend per equity share: Rs 1.50 (15% on face value of Rs 10)

This dividend announcement, despite the challenging year, indicates the company's commitment to returning value to its shareholders.

Future Outlook

Shree Digvijay Cement is focusing on growth and expansion:

• A new grinding unit expansion is in progress
• The expansion is expected to be commissioned in Q1 FY2026

This strategic move could potentially boost the company's production capacity and market presence in the coming fiscal year.

Upcoming Annual General Meeting

The company has scheduled its 80th Annual General Meeting for August 29, 2025, where shareholders will have the opportunity to discuss the company's performance and future strategies.

As Shree Digvijay Cement navigates through a challenging period, the combination of strategic expansion plans and signs of quarterly improvement may provide a foundation for potential growth in the upcoming fiscal year.