The Board of Directors of UltraTech Cement approved the acquisition of a 32.72% equity stake in India Cements from the promoters and their associates during a meeting today (July 28). UltraTech will pay ₹3,954 crore at ₹390 per share for this stake. This transaction will also trigger a mandatory open offer at the same price, subject to regulatory approvals.
The offered price represents a 4.1% premium over India Cements’ closing price of ₹374.60 last Friday. India Cements has a total grey cement capacity of 14.45 million tonnes per annum (mtpa), with 12.95 mtpa in the South (mainly Tamil Nadu) and 1.5 mtpa in Rajasthan.
UltraTech previously acquired a 22.77% stake in India Cements at ₹268 per share in June 2024. The promoter group then approached UltraTech to sell their remaining shares, which UltraTech deemed a strategic move.
Kumar Mangalam Birla, Chairman of the Aditya Birla Group, highlighted that UltraTech’s investments, both organic and inorganic, aim to enhance India’s position as a global leader in building solutions. He emphasized that these investments contribute significantly to economic development and infrastructure improvement, benefiting the country’s housing, roads, and other critical sectors. Birla also described the India Cements acquisition as a promising opportunity that will help UltraTech better serve the southern markets and advance towards their goal of a 200+ MTPA capacity.
