UltraTech Cement to Acquire Major Stake in India Cements Ltd

UltraTech Cement will acquire a 32.72% stake in India Cements Ltd for Rs 3,954 crore, increasing its total stake to over 55%. This acquisition requires an open offer as per Sebi regulations. The move aims to strengthen UltraTech's presence in the Southern Indian market.

Leading cement manufacturer UltraTech Cement is set to acquire an additional 32.72% stake in India Cements Ltd from the company's promoters for Rs 3,954 crore, according to a regulatory filing on Sunday.

The board of the Aditya Birla Group's UltraTech approved the proposal, which amounts to Rs 390 per share. This transaction, involving three share purchase agreements, propels UltraTech's stake in India Cements Ltd (ICL) to over 55%, requiring the company to make an open offer as per Sebi regulations.

After obtaining regulatory approvals, UltraTech will proceed with the Rs 3,954 crore payment. This move is part of UltraTech's broader strategy to enhance its footprint in the Southern Indian market, particularly in Tamil Nadu, and comes after the company's recent acquisition of a 23% stake in ICL from the Damani Group. Aditya Birla Group Chairman Kumar Mangalam Birla highlighted the strategic importance of this acquisition, aiming to become one of the world's largest cement companies with a target of 200 MTPA in capacity.