UltraTech Cement to acquire 23% stake in India Cements

Published 27th June 2024

The acquisition

UltraTech Cement is set to acquire a 23% stake in India Cements. The acquisition will be completed within a month.

Deal details

UltraTech will buy 7.06 crore equity shares at up to Rs 267 per share, totaling Rs 1,885 crore. This will be an all-cash transaction.

The rationale behind the acquisition

The acquisition aligns with UltraTech's goal to achieve a 200 MTPA capacity. (Contd)

The rationale behind the acquisition

The deal also grants UltraTech access to Southern markets, where India Cements has a strong presence with a 15.5 MTPA capacity.

The market’s reaction

Following the news, the share price of India Cements surged 10%. Likewise, UltraTech’s share price jumped 4%.

Industry trend

The cement industry is witnessing consolidation, with large manufacturers acquiring smaller peers.

Recent acquisitions

Recently, UltraTech acquired Kesoram Industries, and Ambuja acquired Sanghi Industries.