UltraTech Cement, India\u2019s premier cement producer, announced on Sunday that its board has approved a major $472 million deal to acquire a controlling stake in India Cements. This strategic acquisition is expected to bolster UltraTech\u2019s position in the southern states of India, where India Cements has a strong presence.<\/p>\n
The acquisition comes amid fierce competition among India\u2019s top cement producers, all vying to dominate a market that is projected to nearly double in size to $49 billion by 2029. This growth is anticipated to be driven by an infrastructure spending boom under Prime Minister Narendra Modi\u2019s government, which has placed a strong emphasis on building and upgrading the country\u2019s infrastructure.<\/p>\n
UltraTech, which is part of the Aditya Birla Group, will acquire a 32.72% stake in India Cements from its promoters and their associates. This move follows UltraTech\u2019s purchase of a 23% stake in India Cements in June. Following the June acquisition, the promoters of India Cements offered to sell their remaining holdings to the Birla Group company, as per a statement released by UltraTech.<\/p>\n
The deal will see UltraTech paying 39.54 billion rupees ($472.38 million) at a rate of 390 rupees per share for the 32.72% stake in India Cements. This acquisition will also trigger an open offer requirement, allowing UltraTech to buy additional shares from public shareholders at the same price. The offer price is set at a 4.3% premium over India Cements\u2019 most recent closing price.<\/p>\n
The acquisition is expected to provide UltraTech with significant operational synergies and strengthen its overall market position. As India\u2019s infrastructure development accelerates, the combined strengths of UltraTech and India Cements are likely to play a pivotal role in meeting the country\u2019s increasing demand for cement, thereby driving growth and profitability for the company.<\/p>\n","protected":false},"excerpt":{"rendered":"
UltraTech Cement, India\u2019s leading cement producer , has approved a $472 million deal to acquire a 32.72% stake in India Cements, enhancing its presence in southern India. This strategic move follows a prior 23% stake purchase and aims to capitalize on the anticipated infrastructure boom under PM Narendra Modi\u2019s government.<\/p>\n","protected":false},"author":415,"featured_media":25027,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[5014,4424,14150,14151,14149,5368,14148,14147],"class_list":["post-25014","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-india","tag-acquisition","tag-aditya-birla-group","tag-cement-industry","tag-india-cement","tag-infrastructure-boom","tag-investment","tag-market-expansion","tag-ultratech-cement"],"reading_time":"2 min read","_links":{"self":[{"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/posts\/25014","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/users\/415"}],"replies":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/comments?post=25014"}],"version-history":[{"count":0,"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/posts\/25014\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/media\/25027"}],"wp:attachment":[{"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/media?parent=25014"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/categories?post=25014"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/tags?post=25014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}