In an important financial development, Shree Digvijay Cement Company Limited has secured term loan facilities worth ₹488 crore from two major banks to support its business plans and financing requirements.
Background of the Agreement
Earlier, on 4 September 2025, the company had announced its proposal to enter into a Brand Usage, Supply and Distributorship Agreement (BDA) with Hi-Bond Cement (India) Private Limited. Under this agreement, Shree Digvijay Cement will get exclusive long-term distribution rights for cement products manufactured by Hi-Bond Cement.
As part of this agreement, the company is required to provide a refundable security deposit of ₹400 crore to Hi-Bond Cement. This deposit is subject to necessary regulatory approvals and fulfilment of certain conditions.
Later, on 16 September 2025, the company informed the exchanges that it had increased its overall borrowing limit to ₹750 crore. This increase was mainly planned to fund the ₹400 crore security deposit required under the BDA.
The company also received approval from the Competition Commission of India on 19 November 2025, allowing the transactions mentioned in the agreement to proceed.
Loan Agreements Signed with Banks
To arrange the required funds, Shree Digvijay Cement executed facility agreements and security creation documents on 12 March 2026 with two banks: ICICI Bank and Axis Bank.
ICICI Bank is one of the largest private sector banks in India. It was originally established in 1994 as a subsidiary of ICICI Limited.
Today, ICICI Bank operates thousands of branches and ATMs across India and also has a presence in several countries including the United States, United Kingdom, Singapore, Canada, and the Middle East.
These agreements provide term loan facilities that will be used partly for the security deposit under the BDA and partly for refinancing the company’s new cement mill.
Breakdown of the Funding
The total funding structure of ₹488 crore is as follows:
- Axis Bank: ₹178 crore for the security deposit and ₹66 crore for refinancing the new cement mill, totaling ₹244 crore.
- ICICI Bank: ₹178 crore for the security deposit and ₹66 crore for refinancing, totaling ₹244 crore.
- Company Cash Flow: The remaining ₹44 crore of the security deposit will be arranged from the company’s internal cash flow.
This brings the total security deposit funding to ₹400 crore, while ₹132 crore will be used for refinancing the new cement mill.
With this financing arrangement, Shree Digvijay Cement has secured the required funds to support its distribution agreement with Hi-Bond Cement and strengthen its cement production infrastructure. The move is expected to help the company expand its market presence and improve its operational capabilities in the cement sector.
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