UltraTech Cement's Strategic Demerger Boost

The Aditya Birla group's UltraTech Cement announced the demerger of Kesoram Industries' cement business, effective from March 1, 2025. The scheme involves merging Kesoram's cement assets with UltraTech and issuing new equity and nonconvertible preference shares. This move adds over 7 MTPA to UltraTech's production capacity.

The Aditya Birla group's UltraTech Cement has unveiled plans for the demerger of Kesoram Industries' cement business, a decision set to take effect from March 1, 2025. The arrangement involves the integration of Kesoram's cement assets into UltraTech, enhancing its production capacity.

Details of the scheme reveal UltraTech's commitment to issuing one fully paid-up equity share for every 52 shares held by Kesoram's shareholders. Additionally, the transaction includes issuing nonconvertible redeemable preference shares, granting Kesoram's preference shareholders significant value in the merger.

The demerger, backed by regulatory approvals from bodies including the CCI and National Company Law Tribunal, will transition Kesoram to focus solely on its paper and rayon businesses. UltraTech's acquisition strategy aligns with its goal to outperform competitor Ambuja Cement amidst expansive market dynamics.

(With inputs from agencies.)