By Latest News
Following the announcement, UltraTech shares rallied by 6 per cent to touch a fresh peak of Rs 11,811. At around 10.15 am, the company shares were seen up 4 per cent | File image
UltraTech Cement said on Thursday it will acquire a 23 per cent stake in Chennai-based India Cements (ICL). The Aditya Birla Group-owned company will purchase 70.6 million shares of India Cements at a price of up to Rs 267 per share, with a total deal value of Rs 1,885 crore.
“The board of directors of the company at its meeting approved making a financial investment to purchase up to 7.06 crore equity shares of The India Cements at a price of up to Rs 267 per share,” said UltraTech in a statement. It is a non-controlling financial investment and constitutes around 23 per cent of the equity share capital of ICL. The indicative time period for the completion of the deal is one month.
Shares of UltraTech, which is India’s largest cement company, rallied by 6 per cent to touch a fresh peak of Rs 11,811. At around 10.15 am, the company’s shares were up 4 per cent at Rs 11,614. India Cements shares were up 9 per cent at Rs 288.
“India Cements has a cement capacity of 14.45 million tonnes per annum, majorly in South India markets. At Rs 267 per share, UltraTech’s equity investment is valued at $85 per tonne on an enterprise value per tonne basis,” said an industry analyst. The Chennai-based company posted a turnover of Rs 5,112 crore in 2023-24 versus Rs 5,608 crore in 2022-23 and Rs 4,858 crore in 2021-22.
First Published: Jun 27 2024 | 10:30 AM IST