The Competition Commission of India (CCI) has approved the Rs 7,000 crore deal on 20 December 2024, under which UltraTech Cement will acquire a majority stake in India Cements.
Shares of Ultratech Cement rose by 0.21% to Rs 11,448.45, while India Cements surged by 8.22% to Rs 366.85 on the BSE.Under the acquisition, the company will acquire 10,13,91,231 equity shares of Rs 10 each, representing 32.72% of the equity share capital of India Cements held by the promoters, members of the promoter group, and other shareholders.
In addition, the CCI also approved the companys open offer to acquire up to 8,05,73,273 equity shares (26% of the equity share capital) at a price of Rs 390 per share from the public shareholders of India Cements.
On 28 July2024, the companys board had announced the acquisition of a 32.72% stake in India Cements from promoters and their associates in Rs 3,954-crore deal, which would expand its footprint in the highly competitive and fast-growing southern cement market. Besides, Ultratech had also announced Rs 3,142.35 crore open offer to acquire 26% share of India Cements from its shareholders.
The principal business of India Cements is the manufacturing and sale of cement and cement-related products.
UltraTech Cement is the cement flagship company of the Aditya Birla Group. It is the third largest cement producer in the world, outside of China, with a consolidated grey cement capacity of 154.86 mtpa.
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