Promoter N Srinivasan Exits As UltraTech Cement Buys India Cements

UltraTech Cement Ltd., the flagship company of the Aditya Birla Group, has today approved the purchase of 32.72% equity in India Cements from promoters their associates.

The company will pay Rs 3,954 crore at Rs 390 per share for the promoter stake, and will make an open offer at Rs 390 per share to minority shareholders. As a result, promoter N Srinivasan will be exiting from the company.

UltraTech had made a financial investment in India Cements to acquire 22.77% equity at a price of Rs 268 per share in June 2024.

"Post this financial investment, the promoter group approached us as they wanted to sell their holding in the company, and we found it appropriate to acquire their stake in the company," the company said in a statement on Monday.

The offer price of Rs 390 per share is at a 4.8% premium from the closing price of Rs 372 per share on Friday.

In June, RK Damani had also sold his stake to UltraTech, but at a price of around Rs 265-268 apiece, a significant difference to today's open offer price.

India Cements has a total capacity of 14.45 mtpa of grey cement. Of this, 12.95 mtpa is in the South (particularly Tamil Nadu) and 1.5 mtpa is in Rajasthan. The transaction is subject to regulatory approvals.

“The India Cements opportunity is an exciting one as it enables UltraTech to serve the Southern markets more effectively and also accelerates our path to 200+ MTPA capacity," said Kumar Mangalam Birla, Chairman, Aditya Birla Group.