UltraTech Cement Limited, a leading player in the Indian cement industry, has announced the approval of its Board of Directors to acquire a significant non-controlling minority stake in Star Cement Limited. The acquisition involves purchasing up to 3.7 crore equity shares, which represent approximately 8.69% of Star Cement’s total equity. The purchase will be executed at a price not exceeding Rs 235 per share, translating to a total investment of Rs 851 crore, excluding applicable taxes and levies.
Strategic Investment in the Cement Sector
Star Cement, headquartered in Meghalaya, is a key player in the northeastern region of India. It has reported an impressive turnover of Rs 2,910.66 crore for the financial year ending March 31, 2024 (FY24). The company’s operational strength and market position in the northeastern region align with UltraTech Cement’s strategy to strengthen its footprint in the Indian cement market.
Key Transaction Details
- Stake Acquired: Approximately 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 aims to complete the transaction within a month, subject to necessary regulatory approvals and compliance. The acquisition underlines UltraTech’s commitment to strategic growth through investments in companies that complement its operational and geographical expansion plans.
About Star Cement
Star Cement Limited is a prominent cement manufacturer with a strong presence in India’s northeastern states. It operates integrated cement plants and grinding units, providing high-quality cement for both retail and institutional customers. The company’s performance in FY24, with a turnover of Rs 2,910.66 crore, highlights its robust market presence and operational efficiency.
