UltraTech Cement, a major player in the Indian cement industry, has announced plans to acquire an additional 32.72% stake in India Cements Ltd for ₹3,954 crore. The deal was approved by UltraTech’s board on Sunday and involves purchasing shares at ₹390 each.
The acquisition will increase UltraTech’s stake in India Cements from its current level to over 55%, triggering a mandatory open offer to existing shareholders as per Securities and Exchange Board of India (SEBI) regulations. UltraTech will offer ₹390 per share, which is a 4.1% premium over India Cements’ last closing price of ₹374.60.
UltraTech has finalized three share purchase agreements with the promoter family of India Cements, led by Srinivasan N and Gurunath. The deal will require UltraTech to make an additional open offer for up to 8.05 crore equity shares, representing 26% of India Cements’ equity, at the same price of ₹390 per share.
This acquisition follows UltraTech’s previous purchase of a 23% stake in India Cements in June, which was acquired from the Damani group in transactions valued around ₹1,900 crore. This new acquisition will further strengthen UltraTech’s presence in the competitive and fast-growing southern cement market, particularly in Tamil Nadu, where it has had limited reach.
UltraTech’s board emphasized that the transaction is aimed at expanding its footprint in the southern region and enhancing its market position. Once completed, this acquisition will also pave the way for UltraTech to approach its goal of achieving over 200 million tonnes per annum (MTPA) capacity.
Aditya Birla Group Chairman Kumar Mangalam Birla highlighted that this investment aligns with UltraTech’s strategy to bolster its presence in the building solutions sector, drive economic growth, and support India’s infrastructure development. UltraTech’s capacity has surged 11-fold over the past two decades, a significant leap compared to the industry average.
The transaction is pending regulatory approvals from the Competition Commission of India and other authorities. UltraTech Cement, the flagship cement company of the Aditya Birla Group, has been on a rapid expansion trajectory, reflecting its commitment to becoming a global leader in the cement industry.
