UltraTech Cement’s Major Stake Acquisition in India Cements

UltraTech Cement Acquires Major Stake in India Cements

UltraTech Cement Ltd has announced a significant acquisition, buying a 32.72% stake in India Cements Ltd. This move will boost UltraTech’s ownership to 55.49% in the company, triggering a mandatory open offer.

Acquisition Details

In June, UltraTech purchased a 22.77% stake in India Cements at Rs 268 per share. The latest transaction involves acquiring an additional 32.72% from promoters and associates at Rs 390 per share, totaling Rs 3,954 crore.

Open Offer

To comply with Sebi regulations, UltraTech will make an open offer to purchase up to 8.05 crore shares, representing 26% of the equity, from public shareholders at Rs 390 per share. This offer amounts to approximately Rs 3,142.39 crore and is priced 4% above India Cements’ closing share price on the previous Friday.

Additional Transactions

As part of the acquisition, UltraTech will also buy 1.99 crore equity shares (6.44% of equity) from Rupa Gurunath and 1,33,16,783 equity shares (4.30% of equity) from Sri Saradha Logistics Private Limited.

Regulatory Approvals

The transactions, collectively termed the “Primary Acquisition,” are subject to statutory and regulatory approvals. This move represents a strategic expansion for UltraTech Cement in the Indian market.

Strategic Impact

This acquisition strengthens UltraTech’s position in the cement industry, providing a larger market share and increased influence in the sector. The open offer and additional share purchases reflect UltraTech’s commitment to expanding its footprint in India Cements.

Aakhir Tak Editor-in-Chief

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