UltraTech Cement Receives NCLT Nod To Acquire Kesoram’s Cement Assets

UltraTech Cement Limited, headquartered in Mumbai, stands as a significant player in the global cement industry. With an installed production capacity of 152.70 million tonnes per annum and an annual sales volume of 119 million tonnes, the company ranks as the 5th largest cement producer worldwide. In India, it leads the market in the production of grey cement, ready-mix concrete (RMC), and white cement, reflecting its extensive operational scale and market reach.

UltraTech Cement Secures NCLT Approval for Kesoram Industries Acquisition

UltraTech Cement, announced on November 26 that the National Company Law Tribunal (NCLT) has approved its Rs. 7,600 crore acquisition of Kesoram Industries. The acquisition, initiated via a share purchase agreement last year, focuses on cement assets predominantly located in southern India.

The deal is expected to bolster UltraTech’s position in these markets under the Aditya Birla Group umbrella. In addition, the company has allocated Rs. 400–500 crore to upgrade Kesoram’s cement facilities to improve efficiency and enhance productivity.

UltraTech Raises Funds Through Non-Convertible Debentures

To support its expansion and strategic investments, UltraTech Cement’s board has approved the issuance of unsecured non-convertible debentures (NCDs) worth Rs. 1,000 crores on a private placement basis. These bonds, with a tenure of 10 years, carry a coupon rate of 7.22 per cent.

The capital raised will help UltraTech Cement streamline operations, finance upgrades, and maintain its growth trajectory in the competitive cement industry.

Ultratech Cement Share Price

Ultratech Cement’s share price currently trades at Rs.11,020.10 per share down by 0.9% from its previous closing price. Over the past month, the stock has gained 1.14%, On a yearly basis, the stock has surged by nearly 30%, achieving a 52-week high of Rs. 12,138.00 and a low of Rs. 8,588.25.

Conclusion: The acquisition of Kesoram Industries solidifies UltraTech Cement’s leadership in India’s cement sector, particularly in the southern regions. Coupled with efficiency-focused upgrades and strategic fundraising, the move reflects the company’s long-term growth strategy.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions