UltraTech Cement board approves Kesoram demerger

27 Feb 2025 , 09:43 AM

UltraTech Cement Limited announced that it has received board approval for implementation of the demerger scheme involving Kesoram Industries. The scheme is effective from March 1, 2025. As part of the scheme, UltraTech shall issue 1 equity share of ₹10 each for every 52 shares held in Kesoram Industries by shareholders as of the record date.

Under the demerger agreement, Kesoram’s preference shareholders will be issued 54,86,608 fully paid-up 7.3% non-convertible preference (NCRP) shares of ₹100 each in exchange for 90,00,000 5% cumulative NCRP shares of ₹100 each held by Kesoram’s shareholders.

Additionally, the company shall issue 8,64,275 fully paid-up 7.3% NCRP shares of ₹100 each against 19,19,277 optionally convertible redeemable preference shares of ₹100 each held by Kesoram’s preference shareholders. Kesoram Industries shall determine the record date for equity shareholders.

Further, UltraTech Cement stated that it plans to expand its presence in the construction value chain by foraying into the wires and cables business. This will have a capital expenditure of ₹1,800 Crore. 

Furthermore, the company’s board has approved the proposal which shall be executed via its Building Products Division as part of its strategy to establish itself as a comprehensive Building Solutions provider.

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