UltraTech Cement Raises Rs 1,000 Crore Via NCDs; Gets NCLT Nod For Kesoram Acquisition
The Rs 7,600 crore Kesoram Industries acquisition will boost UltraTech Cement’s capacity by 10.8 million tonnes annually, strengthening its position in southern and western India.
UltraTech Cement Ltd. on Tuesday raised Rs 1,000 crore from the issue of non-convertible debentures. The board approved the allotment of unsecured redeemable NCDs on a private placement basis, according to an exchange filing.
The tenure of the bond is 10 years with a coupon rate of 7.22%.
The fundraise comes after the board last week approved raising up to Rs 3,000 crore in one or more tranches via fully paid, unsecured, listed, rated, redeemable, rupee-denominated, non-convertible, non-cumulative debentures.
Besides the NCDs issue, the Aditya Birla Group cement maker also notified getting approval from the National Company Law Tribunal for its acquisition of Kesoram Industries Ltd.
India's largest cement manufacturer announced a share purchase agreement in November last year to acquire Kesoram's cement assets.
The transaction will add a total cement capacity of 10.8 million tonnes per annum to UltraTech's portfolio and will help the company deepen its presence in the southern and western markets. The deal also includes UltraTech undertaking Kesoram's debt on its balance sheet. The deal is valued at Rs 7,600 crore.
The management expects to finalise the agreement by March 2025.
UltraTech Cement's consolidated net profit fell to Rs 825 crore, down from Rs 1,280 crore a year ago, missing Bloomberg consensus estimates of Rs 1,039.24 crore. The company's performance was weighed down by weak cement pricing and subdued demand due to the monsoon season.
Shares closed 3% lower at Rs 1,110.85 apiece, ahead of the announcement, compared to a decline of 0.11% in the benchmark Nifty 50.
