UltraTech Acquires 32.72% Stake in India Cement for ₹3,954 Crore; Total Stake 55.49%
The board of directors of UltraTech Cement, owned by the Aditya Birla Group, has approved the purchase of a 32.72% stake in India Cement Limited. UltraTech will pay a total of ₹3,954 crore at a rate of ₹390 per share for this deal.
This acquisition will provide the company with over 10 crore shares from India Cement’s promoters and associates. UltraTech Cement will now hold a majority stake of 55.49% in India Cement. This information was disclosed in the company’s exchange filing today, Sunday (July 28).
Purchased 22.77% Stake for ₹1,885 Crore in June
In June, UltraTech Cement’s board of directors approved the acquisition of a 22.77% stake in India Cement. The company purchased 7.06 crore shares of India Cement at ₹268 per share. The total value of this deal was approximately ₹1,885 crore.
UltraTech’s Shares Up by 40.42% in a Year
UltraTech Cement’s share closed at ₹11,664.05 with a 1.95% rise on July 26, Friday. The company’s shares have seen a 0.03% decrease over the past month. The return on shares has been 13.53% over six months and 40.42% over the past year. This year, UltraTech’s shares have increased by 11.47%.
UltraTech is the Country’s Largest Cement Company
UltraTech is the largest cement company in the country, with a total production capacity of 152.7 MPTA. Earlier this year, the company acquired the cement business of Kesoram for an enterprise value of ₹7,600 crore.
UltraTech May Acquire Orient Cement: Final Negotiations Underway
Kumar Mangalam Birla’s company, UltraTech Cement, is eyeing Orient Cement Limited to compete with Adani in the cement business. According to media reports, Birla is in the final round of negotiations with Orient Cement’s promoter CK Birla to acquire the company.
These new efforts to acquire Orient Cement are seen as a move to strengthen UltraTech’s position in the South and West markets, particularly in Maharashtra and Telangana. Discussions regarding the acquisition of Orient Cement took place earlier last year, but the deal was not finalized.
