UltraTech Cement To Acquire 32% Majority Stake In India Cements For Rs 3,954 Cr

UltraTech Cement’s Board of Directors has approved the acquisition of a 32.72 per cent equity stake in India Cements Limited from the promoters and their associates. This follows UltraTech’s initial investment in June 2024, where the company acquired a 22.77 per cent equity stake at Rs 268 per share. 

The new acquisition will be executed at Rs 390 per share, amounting to Rs 3,954 crore, pending regulatory approvals.

India Cements is a prominent player in the cement industry and has a total production capacity of 14.45 million tonnes per annum (mtpa) of grey cement, with 12.95 mtpa located in Tamil Nadu and 1.5 mtpa in Rajasthan. The acquisition will enhance UltraTech’s presence in the Southern Indian market, which aligns with its strategic goal to exceed a production capacity of 200 mtpa.

The transaction will require the signing of a Share Purchase Agreement (SPA) and subsequent regulatory approvals and will trigger a mandatory open offer at Rs 390 per share to the remaining shareholders. This open offer will be initiated once all regulatory approvals are secured.

In a statement, Kumar Mangalam Birla, Chairman, Aditya Birla Group, said, “UltraTech Cement’s investments over the years, both organic and inorganic, have been designed to propel India to become a building solutions champion globally. Every investment in a core sector like cement accelerates economic activity and drives progress. These investments have also facilitated India’s nationwide infrastructure upgrade, powering our country’s growing need for housing, roads, and other vital infrastructure. This, in turn, has had tremendous impact on the lives and aspirations of people.”