The enterprise value of the acquisition, announced onFebruary 6, is Rs 5,500 crore, which includes an equity valueof Rs 2,300 crore and debt of Rs 3,200 crore on Emami Cement'sbalance sheet.
"NVCL is likely to finance the equity value throughfresh equity/quasi equity infusion, the source of which willbe finalised over the next few days," India Rating said in anote.
The rating agency believes that the acquisition willsignificantly strengthen NVCL's market position, making it thesixth-largest cement manufacturer in India and the largest inthe eastern region, it said.
The combined entity's EBITDA could exceed Rs 2,000crore in FY21 with EBITDA-per-tonne of over Rs 1,000,"comparable" to most of the major players in the industry, butmay "delay NVCL's deleveraging plan by a year", the note said. BSMRBT RBT