CHENNAI: Leading cement manufacturer UltraTech Cement will acquire 23% of non-controlling stake in south Indian cement major India Cements.
The total value of the 23% acquisitions is pegged at Rs 1,885 crore, which is one of the significant acquisitions in the cement sector in the country. On Thursday morning, India Cements shares were trading at Rs 286 per share, up 9% over the previous close.
In a regulatory filing, UltraTech Cement said its board of directors on Wednesday approved a financial investment to purchase a little over seven crore equity shares of the Chennai-headquartered India Cements (ICL) at a price of Rs 267 per share. This non-controlling financial investment constitutes around 23% of the equity share capital of ICL, it added. The acquisition will be completed within one month, which will be a cash transaction.
India Cements had reported a turnover of Rs 5,112 crore in FY24. In Q4 FY24, the company reported a decrease in loss at Rs 29.3 crore in the quarter ended March 31, 2024, against Rs 217.8 crore in the corresponding quarter last year. Its revenue from operations declined by 14.7% in Q4 FY24 at Rs 1,245.4 crore from Rs 1,460.5 crore during the year-ago quarter. Clinker production was at 67.9 lakh tonne in FY24 against nearly 73 lakh tonne during FY23.
