{"id":5165,"date":"2024-11-27T10:15:14","date_gmt":"2024-11-27T04:45:14","guid":{"rendered":"https:\/\/lakshmishree.com\/news\/?p=5165"},"modified":"2024-11-27T10:15:15","modified_gmt":"2024-11-27T04:45:15","slug":"ultratech-cement-gets-nclt-approval-for-rs-7600-crore-kesoram-deal","status":"publish","type":"post","link":"https:\/\/lakshmishree.com\/news\/ultratech-cement-gets-nclt-approval-for-rs-7600-crore-kesoram-deal\/","title":{"rendered":"UltraTech Cement Gets NCLT Approval for Rs 7,600 Crore Kesoram Deal"},"content":{"rendered":"\n<p>UltraTech Cement, the largest cement producer in India, said on November 26 that the National Company Law Tribunal has approved its deal for the acquisition of the cement assets of Kesoram Industries Ltd for Rs 7,600 crore.<\/p>\n\n\n\n<p>The acquisition, which was announced in November last year, will consolidate UltraTech Cement&#8217;s presence in southern India, an important growth region. The company will, post-acquisition, spend Rs 400-500 crore to bring efficiency at the cement plants of Kesoram.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Funding and Future Plans<\/strong><\/h3>\n\n\n\n<p>To support its operations, the UltraTech board also approved raising <strong>Rs 1,000 crore<\/strong> through unsecured <strong>non-convertible debentures (NCDs)<\/strong> on a private placement basis. These bonds have a tenure of <strong>10 years<\/strong> with a <strong>7.22% coupon rate<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Financial Performance<\/strong><\/h3>\n\n\n\n<p>Despite this strategic expansion, UltraTech Cement faced challenges in the September quarter:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Net profit<\/strong> dropped <strong>36%<\/strong> year-on-year to <strong>Rs 820 crore<\/strong>, compared to <strong>Rs 1,280 crore<\/strong> in the same period last year.<\/li>\n\n\n\n<li><strong>Revenue from operations<\/strong> fell <strong>2.3%<\/strong> to <strong>Rs 15,635 crore<\/strong>, down from <strong>Rs 16,012 crore<\/strong> in Q2FY24.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Outlook<\/strong><\/h3>\n\n\n\n<p>Acquisition The deal is seen bringing in greater competitive advantage in the southern markets for Ultratech and would reinforce long-term growth strategy. Suggested improvements in Kesoram&#8217;s assets are likely to accret a cost saving and operational upside in the quarters to come.<\/p>\n\n\n\n<p>Do you have a news tip for Lakshmishree reporters? Please email us at <a>media@lakshmishree.com<\/a><\/p>\n\n\n\n<p><sup><sub>Source: <a href=\"https:\/\/www.moneycontrol.com\/news\/business\/markets\/ultratech-cement-receives-nclt-nod-to-acquire-kesorams-cement-assets-12877004.html\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/www.moneycontrol.com\/news\/business\/markets\/ultratech-cement-receives-nclt-nod-to-acquire-kesorams-cement-assets-12877004.html\" rel=\"noreferrer noopener nofollow\">Moneycontrol<\/a><\/sub><\/sup><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>UltraTech Cement, the largest cement producer in India, said on November 26 that the National Company Law Tribunal has approved its deal for the acquisition of the cement assets of Kesoram Industries Ltd for Rs 7,600 crore. The acquisition, which was announced in November last year, will consolidate UltraTech Cement&#8217;s presence in southern India, an [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5168,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[50],"tags":[731],"class_list":["post-5165","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-indian-market","tag-ultratech-cement-nclt-approval"],"_links":{"self":[{"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/posts\/5165","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/comments?post=5165"}],"version-history":[{"count":1,"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/posts\/5165\/revisions"}],"predecessor-version":[{"id":5169,"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/posts\/5165\/revisions\/5169"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/media\/5168"}],"wp:attachment":[{"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/media?parent=5165"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/categories?post=5165"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/tags?post=5165"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}