UltraTech Cement Ltd has announced a significant move to consolidate its position in the Indian cement market. The company’s board has approved the acquisition of a 32.72% stake in India Cements Ltd from the promoters and their associates. This follows an initial purchase of a 22.77% stake in June at Rs 268 per share.
The latest transaction, worth Rs 3,954 crore at Rs 390 per share, will elevate UltraTech’s total ownership in India Cements to 55.49%. This substantial increase in stake has triggered a mandatory open offer, as per SEBI regulations, at the same price of Rs 390 per share.
To comply with regulatory requirements, UltraTech Cement has also announced an open offer to buy up to 8.05 crore shares, representing 26% of the equity from public shareholders, at Rs 390 per share. This offer is valued at approximately Rs 3,142.39 crore. The offer price is 4% higher than India Cements’ closing price on Friday, reflecting UltraTech’s commitment to secure a controlling interest.
In addition to this, UltraTech has entered into a share purchase agreement (SPA 2) to acquire 1.99 crore equity shares, equating to 6.44% of the equity share capital, from Rupa Gurunath, Trustee of Security Services Trust, and Rupa Gurunath, Trustee of Financial Service Trust, both members of the promoter group. This part of the transaction is valued at Rs 778.21 crore.
Moreover, UltraTech Cement will also acquire 1,33,16,783 equity shares, or 4.30% of the equity share capital, from Sri Saradha Logistics Private Limited. This deal is valued at Rs 519.35 crore.
This strategic move by UltraTech Cement underscores its ambition to strengthen its market leadership and expand its footprint in the Indian cement industry. The acquisitions are expected to enhance operational synergies and boost UltraTech’s overall market presence.
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