N Srinivasan Resigns as India Cements CEO: Stake Ends as UltraTech Acquires the Company
N Srinivasan Resigns as MD and CEO of India Cements
N Srinivasan has resigned from his position as Managing Director (MD) and Chief Executive Officer (CEO) of India Cements. He no longer holds any shareholding in the company and is not its promoter.
UltraTech Cement Acquires 55.49% Stake in India Cements
One of the promoters of India Cements, UltraTech Cement, has acquired a 55.49% stake in the company. This acquisition was made in two phases with a total investment of ₹7,000 crore. As per the deal terms, Srinivasan had to step down from his position.
Chennai Super Kings No Longer a Partner
In a filing, the company stated, “The former promoters, including Chitra Srinivasan, Rupa Gurunath, EVVS Finance & Investments Private Limited, SK Ashok Balaji, Financial Services Trust, Security Services Trust, and Chennai Super Kings Cricket Limited, have resigned from the company. They no longer hold equity shares in India Cements and are not its promoters or members.”
Promoters Approved Sale of 32.72% Stake in July
On July 28, UltraTech acquired a 32.72% stake in India Cements, reducing the company’s stake to 22.77%. This deal received approval from the Competition Commission of India (CCI) on December 24.
UltraTech Bought 22.77% Stake for ₹1,885 Crore in June
In June, UltraTech Cement’s Board of Directors approved the purchase of a 22.77% stake in India Cements. The company acquired 7.06 crore shares of India Cements at ₹268 per share, amounting to a total deal value of approximately ₹1,885 crore.
UltraTech May Acquire an Additional 26% Stake
Fair trade regulators have also allowed UltraTech Cement to acquire up to 26% of India Cements’ paid-up equity share capital through an open offer. UltraTech produces and sells grey cement, white cement, ready-mix concrete, clinker, and building products in India.
UltraTech’s Q2 Profit Declines by 36%
In Q2 of FY2024-25, UltraTech Cement reported a consolidated profit of ₹820 crore, a 36% year-on-year (YoY) decline compared to ₹1,280 crore in the same quarter of the previous year.
UltraTech Shares Rise by 13.39% in One Year
UltraTech Cement shares closed at ₹11,360 on December 24, down 0.98% for the day. Over the past month, the stock has declined by 0.85%. However, it has delivered positive returns of 4.74% over six months and 13.39% over the year.
UltraTech: India’s Largest Cement Company
UltraTech Cement is the largest cement company in India, with a total production capacity of 152.7 million tons per annum (MTPA). Earlier this year, the company acquired Kesoram’s cement business for ₹7,600 crore.
India Cements Produces 14.45 MTPA Annually
India Cements has a production capacity of 14.45 MTPA, including 13 million tons from Tamil Nadu and 1.5 million tons from Rajasthan. The company’s stock has delivered returns of 26.72% over the past month, 43.99% in six months, and 73.27% over the year. Its shares have risen by 42.37% this year.
