Shares of India Cements jumped 11 per cent on Monday morning after the Competition Commission of India (CCI) cleared billionaire Kumar Mangalam Birla-promoted UltraTech Cement’s proposal to acquire a majority stake in the firm. The stock soared 11 per cent to Rs 376.30 on the BSE.
At the NSE, it surged 10.92 per cent to Rs 376.20.
UltraTech Cement’s stock climbed 1.40 per cent to Rs 11,585.40 on the BSE.
“The proposed combination envisages UltraTech Cement Ltd’s (UltraTech/acquirer) acquisition of 32.72 per cent of the paid-up equity share capital of India Cements Ltd (India Cements/target) from the promoters and members of the promoter group of India Cements and Sri Saradha Logistics Pvt Ltd,” CCI said in a release on Friday.The fair trade regulator also granted its clearance to UltraTech Cement to acquire up to 26 per cent of the paid-up equity share capital of India Cements by way of an open offer, it added.
UltraTech is engaged in the business of manufacturing and sales of grey cement, white cement, ready-mix concrete, clinker, and building products in India.
“Competition Commission of India approves UltraTech Cement Ltd’s acquisition of The India Cements Ltd,” the competition watchdog said.
The deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices and promotes fair competition in the marketplace.
