UltraTech Cement will start its open offer to buy shares from India Cements’ shareholders on September 19, closing on October 3. This move comes after UltraTech acquired over 55% of India Cements in the past two months.
Key Details:
- UltraTech will buy 26% of India Cements, which is up to 8,05,73,273 shares, at Rs 390 each.
- A public statement about this offer was issued on Friday. UltraTech can raise the offer price until September 17.
- UltraTech, India’s largest cement producer, bought a nearly 23% stake in India Cements from investor Radhakishan Damani in June. In July, it purchased an additional 32.72% stake from the company’s promoters and associates.
Financial Impact:
- With UltraTech now owning 55.49% of India Cements, an open offer was required by the Securities and Exchange Board of India.
- UltraTech will spend up to Rs 3,142 crore to buy the 26% stake through this open offer. This is a significant premium compared to the Rs 268 per share it paid to Radhakishan Damani.
Additional Information:
- UltraTech has stated it does not plan to delist India Cements.
- Shareholders can offer their shares by informing their stockbrokers within the trading hours during the tendering period. Exchanges will provide a special window for this purpose.
Market Impact:
- On Friday, India Cements’ shares closed at Rs 372.04 on the NSE, up over 2% from the previous day. The shares have risen nearly 82% since June.
This offer provides a significant opportunity for shareholders of India Cements to sell their shares at a premium price.
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