UltraTech to purchase 32.72% equity in India Cements, triggers open offer at Rs 390 per share

In a significant move, the Board of Directors at UltraTech Cement approved the purchase of a 32.72% equity stake in India Cements Limited from the promoters and their associates. This decision follows UltraTech’s financial investment in June 2024, where it acquired a 22.77% equity stake at Rs 268 per share. The acquisition, valued at Rs 3954 crores for 32.72% equity at Rs 390 per share, is contingent on regulatory approvals and will trigger a mandatory open offer at the same price.

India Cements boasts a total capacity of 14.45 million tonnes per annum (mtpa) of grey cement, with 12.95 mtpa in Tamil Nadu and 1.5 mtpa in Rajasthan. UltraTech’s acquisition is poised to significantly enhance its ability to serve the Southern markets and accelerate its path to reaching a 200+ mtpa capacity.

Kumar Mangalam Birla, Chairman of the Aditya Birla Group, expressed enthusiasm about the acquisition, stating, “UltraTech Cement’s investments over the years, both organic and inorganic, have been designed to propel India to become a building solutions champion globally. Every investment in a core sector like cement accelerates economic activity and drives progress. These investments have also facilitated India’s nationwide infrastructure upgrade, powering our country’s growing need for housing, roads, and other vital infrastructure. This, in turn, has had a tremendous impact on the lives and aspirations of people.” He added, “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.”

UltraTech Cement Limited, a flagship company of the Aditya Birla Group, is the third-largest cement producer in the world outside of China, with a total grey cement capacity of 154.86 MTPA. Committed to sustainability, UltraTech is a signatory to the GCCA Climate Ambition 2050 and the Net Zero Concrete Roadmap.

The strategic acquisition underscores UltraTech’s commitment to expanding its footprint and reinforcing its leadership position in the cement industry, driving economic growth and infrastructure development across India.