Blackstone, Temasek eye upto 20% stake in Wonder Cement

Private equity investors Blackstone Group and Temasek Holdings are in separate discussions to acquire 15-20% in Wonder Cement, part of Rajasthan-based RK Group, for Rs 1,000 crore. Wonder Cement is one of the largest cement makers in north-western India. The deal is expected to value the company at $800-900 million (Rs 6,000-6,600 crore). Investment bank JP Morgan has been hired to run the process. The proposed fund infusion will be used to increase the capacity from 6.75 million tonnes per annum (mtpa) to 11mtpa by FY19. Wonder Cement, part of Ashok Patni-led RK Group, is in the process of expanding capacity to 8.75 mtpa by setting up a grinding unit in Maharashtra with a capacity of 2 mtpa. Currently, markets like Rajasthan, western Madhya Pradesh and north Gujarat contribute about 80% sales revenue of Wonder Cement. Group companies of RK Group include RK Marble and Jaipurbased home financing company Wonder Home Finance.