Ultratech to buy 33% stake in India Cements
UltraTech Cements approved the purchase of 32.72% equity stake of the promoters & their associates in India Cements Limited at a board meeting held today. ET first broke the story in the 28th July, Sunday edition.
#Budget 2024 with ET
Budget Highlights: Your 2-minute guide
What's cheaper and what's costlier? Here's the list
New slabs announced in new income tax regime
UltraTech had made a financial investment in India Cements to acquire 22.77% equity at a price of Rs 268 per share in June 2024. Post this financial investment, the promoter group approached us as they wanted to sell their holding in the company, and we found it appropriate to acquire their stake in the company.
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.
Post signing of SPA and obtaining regulatory approvals, UltraTech will pay Rs. 3,954 crores at Rs. 390/ share for buying 32.72% 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 move enables UltraTech to serve the Southern markets more effectively and also accelerates our path to 200+ MTPA capacity.
Mr. Kumar Mangalam Birla, Chairman, Aditya Birla Group, said, “UltraTech Cement’s investments over the years, both organic and inorganic, have been designed to propel India to become a
