No Need To Feel Insecure: N Srinivasan To India Cements Employees As UltraTech Takes Over

N. Srinivasan, the outgoing promoter of India Cements Ltd., has assured the workforce that the transition to UltraTech Cement Ltd. would not impact their careers.

In a recent address to India Cements employees after the acquisition, Srinivasan emphasised that the chairperson of the Aditya Birla Group guaranteed that existing policies would remain unchanged and that there would be space for everybody. "There is no need for anyone in India Cements to feel threatened or insecure about the future."

The flagship company of the Aditya Birla Group approved the purchase of 32.72% equity in India Cements from the promoters and their associates for Rs 3,954 crore at Rs 390 per share. The acquisition will increase UltraTech's stake in India Cements to 55.52%. In June, RK Damani had also sold his stake to UltraTech, but at a price of Rs 265–268 apiece, a significant difference from the latest open-offer price.

Srinivasan reassured employees that UltraTech's management practices should provide confidence and stability. "You must work with full vigour, with the belief that everything will be the same as before. They have a reputation that is very good, and there is no reason for you to have any second doubts," he added.

The acquisition is seen as a strategic move to enhance UltraTech's presence in the southern markets and accelerate its path to a capacity of over 200 million tonnes per annum. The transaction is subject to regulatory approvals, and the offer price is at a 4.8% premium over India Cements' closing price on Friday.

"The future is as solid as it was during my tenure. So, I close my address with all the best," Srinivasan said.

Shares of UltraTech were up 1.45% at Rs 11,843.70 apiece on the NSE, compared to a 0.01% advance in the benchmark Nifty at 2:47 p.m. Shares of India Cements were down 0.01% at Rs 373.95 apiece.