UltraTech Cement Board approves acquisition of 23% stake in India Cements

UltraTech Cement on Thursday announced that its board of directors has approved the acquisition of up to 7.06 crore shares of India Cements Ltd. The company will buy shares of India Cements at a price of up to ₹267 per share.

This gives a total transaction value of approx ₹1,885 crores.

The non-controlling financial investment constitutes about 23% of the share capital of India Cements, the company said in a notification to regulators.

Read here: Why are India Cements shares rising so rapidly today? – explanation

UltraTech Cement said the approximate completion date for the acquisition is one month and it is being done for cash.

Following the announcement, UltraTech Cement’s share price rose by over 6%, while India Cements’ share price rose by as much as 13.7% to a 52-week high ₹299.00 per unit on BSE.

As per India Cements shareholding structure as of March 2024, the promoter group holds 28.42% stake in the company. Ace investor Radhakishan Damani and associates hold 20.78% stake in India Cements.

At 9:45 a.m., UltraTech Cement shares were 5.71% higher at 0.71%. ₹11,786.00 per piece while India Cements shares surged 10.59% at ₹290.80 per piece on BSE.

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