Blitz Bureau
NEW DELHI: UltraTech Cement, the country’s largest cement company approved the purchase of a 32.72 per cent equity stake in India Cements for Rs 3,945 crore said their promoters. In June, UltraTech had made a financial investment in India Cements to acquire 22.77 per cent at a price of Rs 268 per share .
UltraTech will soon sign a Share Purchase Agreement with N Srinivasan-led India Cements promoters and their associates before seeking regulatory approvals. “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,” said UltraTech Cement.
India Cements has a 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. Kumar Mangalam Birla, Chairman, Aditya Birla Group said 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,” he said.
“The India Cements opportunity is an exciting one as it enables UltraTech to serve the Southern markets more effectively and also accelerates the company’s path to over 200 MTPA capacity,” he said.
