UltraTech Cement acquires majority stake in India Cements

 In June 2024, Ultra Tech invested money in India Cements to purchase 22.77% of the company at a cost of Rs 268 per share.

In order to finance the required open offer and purchase Srinivasan's share of India Cements, UltraTech is anticipated to expend over Rs 7,000 crore.

Following this financial commitment, the promoter group contacted us to sell their interest in the business, and we judged it suitable to buy their share," UltraTech said in a statement posted on markets.
India Cements can produce 14.45 million metric tons of grey cement annually. Of this, Rajasthan accounts for 1.5 mtpa and the South, especially Tamil Nadu, for 12.95 mtpa. According to the company's statement, "Regulatory approvals are pending the transaction."

UltraTech would pay Rs. 3,954 crores at Rs. 390 per share to purchase 32.72% of India Cements from the promoters and their partners after the SPA is signed and regulatory approvals are obtained. A required open offer at a price of Rs 390 per share will be prompted by this. Once all regulatory permits are obtained, the Open Offer will take place later, the company stated.

India is becoming a global leader in building solutions thanks to UltraTech Cement's sustained investments, both inorganic and organic. The head of the Aditya Birla Group, Kumar Mangalam Birla, stated that every investment made in a fundamental industry like cement propels economic growth.

"In addition, these investments have helped India modernize its infrastructure nationally, supplying the nation's expanding need for homes, highways, and other essential infrastructure. This has consequently had a profound effect on people's lives and goals."

"The India Cements opportunity is an exciting one," he continued, "since it speeds up our route to 200+ MTPA capacity and allows UltraTech to serve the Southern markets more effectively.