UltraTech Cement Secures CCI Nod for ₹3,954 Crore India Cements Acquisition

20 Dec 2024 , 10:35 PM

The flag bearer Aditya Birla Group, flagship cement-maker UltraTech gets clearance by Competition Commission of India from acquiring India Cements Ltd.

UltraTech Cement Acquisition of India Cements, Ltd. Acquisition Reg Process relating to UltraTech Cement Ltd’s receiving Clearing from the “Competition Commission of India”. – J Sagar Associates serves as Exclusive advisers to such process.

UltraTech Cement had agreed, in July, to take a 32.72% stake in India Cements from promoters and associates in an all-cash deal worth ₹3,954 crore with the motive of consolidating its market in the competitive southern cement market, especially Tamil Nadu.

UltraTech Cement has also made an open offer to acquire further 26% stake in India Cements from public shareholders for ₹3,142.35 crore.

The ultra-large cement player in India, UltraTech Cement has an installed capacity of 154.86 MTPA of grey cement. It wants to get at par with the global giant size of 200 MTPA.

UltraTech Cement’s board approved acquiring 32.72% equity stake in India Cements at ₹390 a share, said a filing at the BSE.

Share purchase agreements accounts for 28.42% from promoters like Srinivasan N, Chitra Srinivasan, Rupa Gurunath and SK Asokh Baalaje and 4.30% from Sri Saradha Logistics. Once the deal of ₹3,954 crore is closed UltraTech’s holding in India Cements would be over 55% which will force an open offer, under SEBI norms.

This open offer would purchase 8.05 crore equity shares that is a 26% equity share capital of India Cements at ₹390 per share; thereby it will be above the last closing price of ₹374.60 by 4.1%. If this issue gets fully subscribed then UltraTech would have paid additional ₹3,142.35 crore; that will further strengthen its hold in the southern cement market.