UltraTech Cement acquires Kesoram Industries' cement business

In a significant development within the Indian cement industry, UltraTech Cement has taken a strategic step towards enhancing its production capacity and market presence. The company's board of directors has approved the acquisition of Kesoram Industries ' cement business. The payment will be made in terms of equity and preference shares. UltraTech will issue one equity share for every 52 equity shares of Kesoram Industries. Additionally, UltraTech will issue 63,50,883 non-convertible redeemable preference shares in exchange for Kesoram's preference shares. Based on this arrangement, the deal is valued at approximately Rs 5,432 crore. As a result of this transaction, UltraTech's promoter stakes will decline by 1.3 percentage points to 57.7 per cent. The company will also take over the Rs 2,000 crore debt of Kesoram's cement business. The transaction is expected to be completed within nine to 12 months, subject to regulatory approvals. A closer look into Kesoram Industries Kesoram Industries is a flagship company of the BK Birla group. It primarily draws its revenue from