UltraTech Cement Board Approves 32.72% Acquisition of India Cements, Strengthening Aditya Birla Group’s Market Presence

The Board of Directors of UltraTech Cement has approved buying a 32.72% equity stake in India Cements from the promoters and their associates. This decision was made during a meeting held on July 28, according to the company’s statement to the stock exchanges.

Purchase Details

UltraTech will pay ₹3,954 crore, at a rate of ₹390 per share, for this stake in India Cements. This transaction will also trigger a mandatory open offer at the same price of ₹390 per share, subject to regulatory approvals.

The offer price is 4.1% higher than India Cements’ last closing price of ₹374.60.

India Cements’ Capacity

India Cements has a total capacity of 14.45 million tonnes per annum (mtpa) of grey cement. Out of this, 12.95 mtpa is located in the southern region, mainly Tamil Nadu, and 1.5 mtpa is in Rajasthan.

Background of the Investment

In June 2024, UltraTech made a financial investment to acquire a 22.77% equity stake in India Cements at ₹268 per share. Following this investment, the promoter group approached UltraTech, expressing their interest in selling their stake in the company, which UltraTech decided to acquire.

Comments from Leadership

Kumar Mangalam Birla, Chairman of the parent company Aditya Birla Group, highlighted that UltraTech’s investments, both organic and inorganic, are aimed at making India a global leader in building solutions. He emphasized that investments in core sectors like cement boost economic activity and infrastructure development, significantly impacting people’s lives and aspirations.

Birla described the India Cements acquisition as an exciting opportunity that will enhance UltraTech’s ability to serve the southern markets and help the company achieve its goal of exceeding 200 mtpa capacity.