Sanghi Cement’s promoters are expecting offers that give the company an enterprise value (EV) of ₹6,000 crore. Due diligence is yet to commence and any transaction could take at least three months before it is finalised, the sources said.
Karsanbhai Patel-promoted Nirma was described as a serious bidder for Sanghi Cement by sources ET spoke with. Bharat Hari Singhania-promoted JK Organisation’s interest in Sanghi Cement was said to be exploratory in nature.
Executives at Nirma and JK Organisation refused to comment.
Sanghi Cements director Alok Sanghi did not respond to ET’s request for comment.
While one source described the chances of the stake sale going through as low, saying there was no apparent reason for Sanghi Cement’s promoters to sell a stake, another said a deal was imminent as a lot of background work had been done and a formal process had been initiated to invite interest for the company.The EV of ₹6,000 crore includes debt of ₹1,800 crore. This places the equity value being discussed at ₹4,200 crore. At this valuation, bidders could fork out between ₹1,680 crore and ₹3,024 crore for the quantum of equity stake being discussed if a deal were to work out, not including the cost of an open offer.