Shares of Star Cement Limited witnessed a sharp of nearly 5% rise following UltraTech Cement Limited’s announcement to acquire a significant non-controlling minority stake in the company. UltraTech Cement, one of India’s leading cement manufacturers, revealed that its Board of Directors has approved the purchase of up to 3.7 crore equity shares of Star Cement, representing approximately 8.69% of the company’s total equity.
The transaction will be executed at a price not exceeding Rs 235 per share, with a total investment amounting to Rs 851 crore, excluding applicable taxes and levies.
As of 9:15 am the shares were trading 6.28% higher at Rs 244.44 on NSE
Strategic Investment in the Cement Sector
Star Cement, headquartered in Meghalaya, has a dominant presence in India’s northeastern region, with a robust operational capacity and market position. For the financial year ending March 31, 2024 (FY24), Star Cement reported a turnover of Rs 2,910.66 crore, reflecting its strong performance and market appeal. UltraTech Cement’s investment aligns with its strategic goal to expand its footprint and strengthen its market presence in this high-potential region.
Key Transaction Details
- Stake Acquired: 8.69%
- Number of Shares: Up to 3.7 crore equity shares
- Price per Share: Not exceeding Rs 235
- Total Investment: Rs 851 crore (excluding taxes and levies)
Timeline and Approvals
UltraTech Cement plans to complete the acquisition within a month, subject to regulatory approvals and compliance. This investment reflects UltraTech’s commitment to strengthening its market position through strategic partnerships and acquisitions.
Star Cement Share Price history
| Day | Open | Close | Change % |
|---|---|---|---|
|
Thu, Dec 26 2024
|
₹237.10
|
₹230.00
|
-2.18%
|
|
Tue, Dec 24 2024
|
₹234.50
|
₹235.12
|
-0.92%
|
|
Mon, Dec 23 2024
|
₹223.40
|
₹237.30
|
|
|
Fri, Dec 20 2024
|
₹224.98
|
₹212.85
|
-4.44%
|
|
Thu, Dec 19 2024
|
₹226.50
|
₹222.73
|
-3.39%
|
|
Wed, Dec 18 2024
|
₹228.45
|
₹230.55
|
|
|
Tue, Dec 17 2024
|
₹226.48
|
₹227.59
|
|
|
Mon, Dec 16 2024
|
₹228.81
|
₹225.04
|
-2.14%
|
About Star Cement
Star Cement Limited operates integrated cement plants and grinding units, catering to retail and institutional customers. The company’s strong financial performance, with a turnover of Rs 2,910.66 crore in FY24, highlights its market relevance and operational efficiency in the northeastern region.
