UltraTech will acquire N Srinivasan’s 28.42% interest in India Cements, raising its ownership to 51%. The Aditya Birla Group will purchase a 32.72% interest for ₹390 per share, totalling ₹3,954 crores. The promoters will own around 28.42% of the company, with the remaining 4.3% coming from associates.
The country’s largest cement firm has declared an open offer for a 26% interest in India Cements at ₹390/share. UltraTech’s open offer for India Cements is 4% over Friday’s closing price. The principal purchase and open offer are scheduled to be completed within six months. Aditya Birla Group Chairman Kumar Mangalam Birla stated, “The India Cements opportunity is an exciting one as it allows UltraTech to serve the Southern markets more effectively and accelerates our path to 200+ MTPA capacity.”
“UltraTech Cement’s investments over the years, both organic and inorganic, have been aimed to catapult India to the worldwide leadership position in building solutions. Every investment in a key industry, such as cement, boosts economic activity and pushes advancement. These investments have also aided India’s national infrastructure update, addressing the country’s expanding need for homes, roadways, and other critical infrastructure. As a result, people’s lives and aspirations have been greatly impacted,” Birla stated.
Ultratech acquired a 22.77% interest in India Cements in June for ₹268 per share. The acquisition of this interest from Radhakrishna Damani cost around ₹1,885 crore, with an average share price of ₹265. UltraTech is India’s largest cement producer, having a total capacity of 152.7 MTPA. In 2024, the firm purchased Kesoram’s cement division for ₹7,600 crore.
India Cements is a key participant in the industry in South India. The merged entity’s installed capacity now stands at 15.5 MT. Apart from cement, the company also operates in the shipping industry. As per the June 2024 quarter shareholding pattern, India Cements promoters owned 28.42% of the firm. On Friday, UltraTech Cement Ltd. shares finished 1.95% higher at ₹11,664.05, while India Cements closed 2.90% higher at ₹372.
