UltraTech Cement Soars on CCI Nod for Kesoram Acquisition

20 Mar 2024 , 11:21 AM

The Competition Commission of India (CCI) authorized UltraTech Cement’s proposed acquisition of Kesoram Cement from Kesoram Industries, and the company’s shares started more than 1% higher at ₹9,535 in early trade on March 20.

“The proposed combination relates to the acquisition of the grey cement business of Kesoram Industries Limited by UltraTech Cement Ltd under a composite scheme of arrangement dated November 30, 2023,” the business stated in a regulatory filing.

The scrip has lost 10% of its value since the year began.

The main business of the BK Birla Group, Kesoram Industries, announced plans to sell its cement division to UltraTech Cement in November of last year through an all-share purchase. The deal, which involved debt, was estimated to be worth ₹7,600 Crore.

The company is an Indian manufacturer and retailer of construction supplies with a public listing. Grey cement, white cement, ready-mix concrete, clinker, and building supplies are among its main offerings.

It exceeded forecasts in the December quarter, reporting a 67% increase in net profit to ₹1,774 Crore. Strong demand for building materials and lower operational expenses were cited as the reasons for this spike.

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