Gulshankumar Chopra Leads Acquisition of Niraj Cement Structurals Ltd in Cash Open Offer

Gulshankumar Chopra Leads Acquisition of Niraj Cement Structurals Ltd in Cash Open Offer​

A cash open offer has been launched by Mr. Gulshankumar Vijaykumar Chopra for the acquisition of equity shares in Niraj Cement Structurals Limited. The Acquirer has offered up to 1,55,20,529 equity shares, representing 26.00% of the fully paid-up equity capital, at an offer price of Rs. 29/- per share, payable in cash.

The open offer is aimed at acquiring stakes from public shareholders and complementing previous acquisition agreements executed with two sellers. The total maximum consideration payable for this portion of the acquisition stands at Rs. 45,00,95,341/-.

Details of the Offer and Acquisition Strategy​

Mr. Chopra’s existing holding in Niraj Cement Structurals Ltd is 52,20,946 equity shares, representing 8.75% of the Voting Share Capital as on the date of the announcement. The acquisition strategy involves three elements: his current stake, shares agreed to be purchased from sellers via Share Purchase Agreements (SPAs), and the shares offered in the open market.

The Acquirer has entered into SPAs with two selling shareholders: Bylan-Niraj Infra Projects Private Limited (Seller-1) and Chem Logistics & Infra Private Limited (Seller-2).


Considering all aspects of the acquisition—his existing stake, the shares purchased via SPAs, and the shares offered in the open offer (assuming full acceptance)—the projected post-offer shareholding for Mr. Chopra is estimated to be 75.78%. The report also notes that upon completion of the Open Offer, his combined holding with other promoters would reach 91.93% of the Equity Share Capital/Voting Share Capital of the Target Company.

Financial Standing and Valuation​

The offer price of Rs. 29.00 per equity share has been justified based on several parameters, including the negotiated prices paid in the SPAs (SPA-1 at Rs. 25.50 per equity share and SPA-2 at Rs. 23.50 per equity share), a volume weighted average market price from the preceding 52 weeks, and the volume weighted average market price from the previous sixty trading days on NSE.

The company's stock performance indicates significant activity on the National Stock Exchange of India Limited (NSE) during the twelve months prior to the announcement, with an annualized trading turnover recorded at 38.69%. The BSE recorded a lower trading turnover of 4.14% in the same period.

Financial Performance Overview​

Niraj Cement Structurals Ltd has reported consistent growth across its financial years for both standalone and consolidated accounts. The company’s authorized capital is Rs. 7,000.00 Lacs, and its issued, subscribed, and paid-up capital stands at Rs. 5,969.43 Lacs.

The following tables detail the key financial metrics of Niraj Cement Structurals Ltd:

Standalone Financial Statements (All figures in millions)

Consolidated Financial Statements (All figures in Lacs)

Company and Offer Timeline​

Niraj Cement Structurals Ltd has been engaged in specialty engineering construction and infrastructure for three decades, offering end-to-end solutions including highways, bridges, and water supply. The company’s main objects include the construction of highways and turnkey projects and manufacturing ferrous and non-ferrous metal products, cement, and structural products.

The scheduled timeline for the open offer includes key activities such as:


The Acquirer has appointed Navigant Corporate Advisors Limited as the Manager to the Offer and MUFG Intime India Private Limited as the Registrar to the Offer.

NIRAJ Stock Price Movement​

Niraj Cement Structurals Limited stock is shedding value in live trading, sinking 4.99% to reach ₹30.85 as of 2:50 PM today. The shares have been traded a volume of 12,813 while slipping from its previous close of ₹32.47.