UltraTech Cement Declares ₹70 Dividend; Major Stake Acquisition to Boost South India Presence | Stocks in Focus

UltraTech Cement Ltd’s shares will be in the spotlight when the stock market opens on Tuesday, July 30, as they will trade ex-dividend. The company’s Board of Directors has announced a final dividend of ₹70.00 per equity share for the financial year 2024. The record date to determine eligible shareholders for this dividend is set for July 30.

In addition to the dividend announcement, UltraTech Cement, part of the Aditya Birla Group, is set to acquire a 32.72% stake in India Cements Ltd for ₹3,954 crore. This move aims to expand UltraTech’s presence in the southern Indian cement market. The company has also made a public offer to purchase an additional 26% stake in India Cements for ₹3,142.35 crore.

The acquisition includes a 28.42% stake from the promoters of India Cements—Srinivasan N, Chitra Srinivasan, Rupa Gurunath, and SK Asokh Baalaje—and a 4.30% stake from Sri Saradha Logistics. UltraTech will pay ₹390 per share for these stakes.

Kumar Mangalam Birla, Chairman of the Aditya Birla Group, expressed enthusiasm about the acquisition, highlighting that it will strengthen UltraTech’s ability to serve the southern markets and increase its total production capacity to over 200 million tonnes per annum.

Earlier this month, UltraTech Cement reported a consolidated net profit of ₹1,696.59 crore for the first quarter ending June 30, 2024, showing flat growth compared to the previous period. The company’s revenue from operations increased by 1.87% to ₹18,069.56 crore, with a 7% rise in consolidated volume sales, reaching 31.95 million metric tonnes. Total expenses for the quarter were ₹16,128.37 crore, up 3.07%.

On Monday, UltraTech Cement’s shares closed at ₹11,877.20 on the BSE, up ₹197.95 or 1.69%.