Aditya Birla group firm UltraTech Cement said on 27 June that the company’s board has approved the acquisition of a 23 percent equity stake in India Cements. UltraTech would buy 7.06 crore shares of India Cements at Rs 267 per share. That puts the total deal value at nearly Rs 1,900 crore.
“The Board of Directors of the Company at its meeting held today approved making a financial investment to purchase upto 7.06 crores equity shares of The India Cements Limited, a company incorporated under the Indian Companies Act, 1913, having its registered office at Dhun Building, 827, Anna Salai, Chennai 600 002, (“ICL”) at a price of upto Rs. 267/- per share. This non-controlling financial investment constitutes around 23% of the equity share capital of ICL,” the company said in a notification to stock exchanges.
The promoter group owns 28.42 percent stake in India Cements, whereas famed investor Radhakishan Damani and associates own 20.78 percent shareholding in the cement firm. UltraTech said that the indicative time period for completion of the acquisition is one month. The acquisition is being done for cash.
As much as 20 percent equity stake in India Cements was sold in the block deal window on Thursday, 27 June. India Cements stock jumped up to 7 percent in the opening trade, extending the previous session’s 14 percent gains.