UltraTech Cement to acquire 23% stake in India Cements
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.
Other Webstories
How Can Front-Running Negatively Impact Quant Mutual Fund Investors?
Why are holding company stocks rallying?
To Read More
Click Here