UltraTech to buy around 23% stake in India Cements at price of Rs 267/share

UltraTech Cement Limited has announced a significant investment in The India Cements Limited, purchasing up to 7.06 crore equity shares at a price of Rs. 267 per share.

This acquisition will give UltraTech a 23% stake in India Cements.

The decision was approved by UltraTech's Board of Directors during a meeting held on June 27, 2024. The investment, which is purely financial and not a related party transaction, aims to strengthen UltraTech's strategic position within the cement industry.

As of the quarter ending in March, Radhakishan Shivkishan Damani and Gopikishan Shivkishan Damani collectively held a 20.78% stake in India Cements.

Shares of India Cements hit upper circuit of 10% post the development. India Cements stock rose 10% to Rs 289.20 on BSE. Market cap of the firm rose to Rs 8962.63 crore. The stock has risen 31.31 per cent in a year and gained 7.58 per cent in 2024. A total of 625.11 lakh shares of the firm changed hands amounting to a turnover of Rs 1662.34 crore on BSE.

India Cements, incorporated in 1946, has its registered office in Chennai. The company has shown consistent performance with a turnover of Rs. 5,112 crore in FY24, Rs. 5,608 crore in FY23, and Rs. 4,858 crore in FY22.

The acquisition is expected to be completed within a month and is being made through cash consideration. This move highlights UltraTech's commitment to expanding its footprint and influence in the cement sector.