In Short:
UltraTech Cement, the top cement producer in India, is buying a 23% stake in India Cements for up to ₹1,885 crore ($226 million). They are purchasing 70.6 million shares for ₹267 each, a 1.7% premium. This move comes as UltraTech competes for market share with Ambuja and ACC cement companies. Ambuja recently acquired Penna Cement, while UltraTech previously bought Kesoram Industries’ cement business.
UltraTech Cement to Acquire 23% Stake in India Cements
Big news in the world of cement today as UltraTech Cement, India’s top cement producer, announced its plans to acquire a 23% stake in India Cements for up to ₹1,885 crore.
The Deal
According to the announcement, UltraTech will be purchasing 70.6 million India Cements shares at a price of up to ₹267 each, representing a 1.7% premium to the stock’s closing price on Wednesday.
Market Impact
Following this news, India Cements’s shares saw a significant jump of 10% to nearly ₹289 in the early hours of trading, while UltraTech’s shares also rose by 5.2%.
Competition in the Cement Industry
This move by UltraTech comes as the company battles for market share against competitors like the Adani group’s Ambuja and ACC cement companies. Just a few weeks ago, Ambuja made a major acquisition by purchasing Penna Cement Industries in a $1.25-billion deal.
Previous Acquisitions
It’s worth noting that UltraTech has been active in the mergers and acquisitions space, having completed the acquisition of Kesoram Industries’ cement business for $645 million last year.
This development is certainly one to keep an eye on as the cement industry in India continues to witness exciting transformations. Stay tuned for more updates!
