Mumbai: In a move that will help strengthen its presence in Eastern India, leading cement maker ACC Ltd on Friday said it is going to pick up a significant stake in Rourkela based cement company Shiva Cement for Rs41 crore.

ACC informed BSE that it has entered into a share subscription agreement with Shiva Cement Ltd (SCL) by which it would be inducted as a shareholder in SCL - which operates a mini cement plant with a clinkering capacity of 350 tonnes per day and cement grinding capacity of 130,000 tonnes per year.

ACC''s operations are spread throughout the country with 14 modern cement factories and 19 ready mix concrete plants.

As per the agreement, ACC would be subscribing to a preferential allotment of 1.45 crore equity shares of Shiva Cement Ltd with a face value of Rs2 and a premium of Rs9 per share in all aggregating to Rs15.95 crore.

ACC would also be subscribing to another preferential allotment of 2.27 crore warrants of SCL - which has an option to convert into corresponding number of equity shares at a face value of Rs2 and a premium of Rs9 per share within 18 months from the date of allotment.

The preferential allotment of warrants would raise another Rs24.97 crore for Shiva Cement.

The allotment would be subject to compliance with the statutory requirements including the approval of the shareholders of Shiva Cement Ltd, it said.

ACC has a supply agreement with SCL in terms of which the Orissa-based firm would manufacture and supply cement to as per the ACC''s quality and other specifications for a period of five years.