UltraTech Cement shares saw gains in Monday’s trading session after the company announced its decision to acquire an additional 32.72% stake in India Cements Ltd. The acquisition will be made at a price of Rs 390 per share. This move increases UltraTech’s holding in India Cements, continuing its strategic expansion in the cement industry.
The transaction, valued at an enterprise value (EV) of $121 per tonne, involves a financial outflow of Rs 1,900 crore. It is pending regulatory approvals. Earlier in June, UltraTech Cement had acquired a 23% stake in India Cements, bringing its total ownership to 56%. The previous acquisition was made at an EV of $108 per tonne.
In addition to the stake purchase, UltraTech Cement has announced an open offer to acquire an additional 26% equity stake in India Cements, also priced at Rs 390 per share. This acquisition aligns with UltraTech’s growth strategy, aiming to consolidate its position in the competitive cement market.
Investors responded positively to the news, reflecting confidence in UltraTech Cement’s strategic direction and its potential impact on the company’s market presence.
