In Short:
UltraTech Cement, part of the Aditya Birla Group, is buying a 32.72% stake in India Cements for ₹3,945 crore. This will help UltraTech cement to expand its presence in the southern market and increase its overall capacity. The deal includes buying the stake from India Cements promoters and an open offer to shareholders. The transaction is subject to regulatory approvals. UltraTech has been making strategic investments in the cement sector to boost economic growth.
UltraTech Cement Acquires 32.72% Stake in India Cements
Exciting news alert! UltraTech Cement is all set to acquire a significant 32.72% stake in India Cements for a whopping ₹3,945 crore. This major move comes as UltraTech continues to solidify its presence in the cement industry.
Key Details of the Acquisition
After securing all necessary regulatory approvals, UltraTech Cement will launch an open offer to India Cements shareholders at ₹390 per share. The Board of Directors of UltraTech has already given their stamp of approval for this strategic acquisition.
This acquisition follows UltraTech’s initial investment in India Cements back in June, where they acquired a 22.77% equity stake. The promoters of India Cements expressed their interest in selling their holdings, prompting UltraTech to make this bold move.
Upscaling Operations
With a focus on expansion and growth, UltraTech aims to leverage this acquisition to better serve the Southern markets and further increase its total capacity to over 200 MTPA.
The Visionary Behind the Move
Kumar Mangalam Birla, Chairman of Aditya Birla Group, emphasized that each investment made by UltraTech contributes to the economic development of the country. This acquisition is a strategic step towards consolidating India’s position as a global leader in building solutions.
Industry Position
UltraTech Cement currently ranks as the third largest cement producer in the world, outside China. With a total Grey Cement capacity of 154.86 MTPA, the company continues to reinforce its position in the market.
Previous Acquisitions and Growth
This acquisition comes on the heels of UltraTech’s recent acquisitions, including a grinding unit in Maharashtra and the cement business of Kesoram Industries. With a series of strategic moves, UltraTech is aiming to strengthen its market presence and drive progress in the industry.
Stay tuned as UltraTech Cement navigates through this exciting phase of growth and expansion in the cement sector!
