India Cement Shares Rose Over 9% After Ultratech Cement Received Acquisition Approval From CCI

On Friday, December 20, 2024, the Competition Commission of India (CCI) gave its approval for UltraTech Cement Limited’s acquisition of India Cements Limited.

Details of the Proposed Acquisition

The proposed acquisition involves UltraTech Cement Limited (UltraTech/Acquirer) acquiring:

1. UltraTech will acquire 32.72% of the paid-up equity share capital of India Cements Limited (India Cements/Target) from the promoters and members of the promoter group of India Cements, as well as from Sri Saradha Logistics Private Limited.
2. UltraTech will also acquire up to 26% of India Cements’ paid-up equity share capital via an open offer.

Once the ₹3,954-crore acquisition is completed, UltraTech’s stake in India Cements will exceed 55%, which will trigger a mandatory open offer as per SEBI regulations.

Background of the Acquisition

In July 2024, UltraTech Cement announced its decision to acquire a 32.72% stake in India Cements from its promoters and associated parties in a ₹3,954-crore deal. The primary objective of the acquisition is to expand UltraTech’s footprint in the fast-growing and highly competitive southern cement market, especially in Tamil Nadu. Additionally, UltraTech proposed a ₹3,142.35-crore open offer to acquire a further 26% stake in India Cements.

About UltraTech Cement

UltraTech Cement is a publicly listed company in India, engaged in the manufacturing and sale of grey cement, white cement, ready-mix concrete, clinker, and other building products. The company also provides building solutions in India and is a subsidiary of Grasim Industries Limited.

UltraTech Cement, with an installed capacity of 154.86 million tonnes per annum (MTPA) of grey cement, is a leader in the Indian cement industry. The company has a strategic goal of becoming one of the largest cement companies globally, with a target to reach 200 MTPA of capacity.

About India Cements

India Cements is also a publicly listed company, with operations in both core and non-core businesses. The core business of India Cements involves the manufacture and sale of grey cement and ready-mix concrete.

On December 23, 2024, India Cements shares opened at ₹362.00 and touched the day high of ₹376.30 at 09:30 AM.

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.