UltraTech to list next week

UltraTech Cemco, a part of the Aditya Birla group, is expecting to list its shares on the Bombay and National stock exchanges next week.

Sources said the Securities and Exchange Board of India has permitted the stock exchanges to list the shares of the company. The bourses are expected to list the shares in a week.

Once the listing is through, Grasim will formally become the largest listed cement company in the country, with a combined rated capacity of 31 million tonne per annum. UltraTech is a subsidiary of Grasim.

UltraTech CemCo is the erstwhile cement division of Larsen & Toubro (L&T), which Grasim had acquired in the beginning of July.

Grasim, which currently holds a majority stake of 51 per cent, initially held 12.6 per cent in UltraTech.

The company had made an open offer for 30 per cent of UltraTech's stake, which was fully subscribed, taking Grasim's holding to 42.6 per cent. Later, Grasim had purchased 8.5 per cent of UltraTech's stake from L&T at Rs 342.6 a share.

L&T currently has a 11.5 per cent sharholding in UltraTech. As part of the deal, Grasim divested its 15 per cent stake in L&T, to the L&T Employees Welfare Trust.

The L&T Employees Foundation bought out Grasim's stake for a consideration of Rs 446.4 crore.

While L&T loaned around Rs 230 crore to its trust, around Rs 200 crore was raised through debt and Rs 16 crore was generated by the trust.