Tuesday, November 5, 2024
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UltraTech Cement acquires majority stake in India Cements

UltraTech Cement board on Sunday approved the purchase of 32.72 per cent equity stake of the promoters and their associates in India Cements.

Ultra Tech had made a financial investment in India Cements to acquire 22. 77 per cent equity at a price of Rs 268 per share in June 2024.

India Cements has a total capacity of 14.45 mtpa of grey cement. Of this, 12.95 mtpa is in the South (particularly Tamil Nadu) and 1.5 mtpa is in Rajasthan. “The transaction is subject to regulatory approvals,” as per the company’s statement.

“Post signing of SPA and obtaining regulatory approvals, UltraTech will pay Rs. 3,954 crores at Rs. 390/ share for buying 32.72 per cent stake in India Cements from the promoters & their associates. This will trigger a mandatory open offer, at Rs 390/ share. The Open Offer will be done subsequently after obtaining all regulatory approvals,” the company said.

“UltraTech Cement’s investments over the years, both organic and inorganic, have been designed to propel India to become a building solutions champion globally. Every investment in a core sector like cement accelerates economic activity and drives progress,” said Kumar Mangalam Birla, Chairman, Aditya Birla Group.

“These investments have also facilitated India’s nationwide infrastructure upgrade, powering our country’s growing need for housing, roads, and other vital infrastructure. This, in turn, has had tremendous impact on the lives and aspirations of people.”

He added, “The India Cements opportunity is an exciting one as it enables UltraTech to serve the Southern markets more effectively and also accelerates our path to 200+ MTPA capacity.”

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