Star Cement Shares Surge 8% on UltraTech Investment

27 Dec 2024 , 11:09 AM

Following the announcement by UltraTech, a company in the Aditya Birla Group, that it would purchase an approximate 8.69% stake in Star Cement for around Rs 851 crore, shares of the company surged 8% to Rs 247.75 on the BSE on Friday.

“The Board of Directors of the Company at its meeting held today considered the proposal and approved making an investment to acquire non-controlling minority stake upto 3.70 crores equity shares of Star Cement at a price not exceeding Rs 235 per share, excluding STT; stamp duty and other levies,” UltraTech stated in a regulatory filing.

It was reported that several of Star Cement’s promoters and promoter group businesses have approached the company with plans to sell their ownership stakes.

As part of its expansion strategy in the Northeast, where Star Cement has a substantial market position, media sources had previously claimed that Ambuja Cement, a division of the Adani Group, was in negotiations to buy Star Cement.

Star Cement, however, denied these rumors, calling them speculative and emphasizing that no such talks were taking place.

The acquisition would be all-cash and is anticipated to be finished in a month.

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