UltraTech intends to acquire this stake, which is 7.06 crore shares at an average price of ₹267 per share. The total cost to acquire this stake comes up to ₹1,885 crore.
India Cements Ltd. witnessed a large trade take place in the pre-market block window. As many as 6 crore shares or 19.4% of the total equity changed hands in the large transaction. The shares changed hands at an average price of ₹265 per share.
UltraTech is the largest cement player in the country with an overall capacity of 152.7 MTPA. Earlier this year, it had acquired the cement business of Kesoram at an enterprise value of ₹7,600 crore.
At the current market price, India Cements is trading at a financial year 2025 Enterprise Value tp EBITDA multiple of 17x, while for financial year 2026, it is trading at 13.69 times.
In comparison, UltraTech is trading at a financial year 2025 EV / EBITDA of 20.8x, for financial year 2026, it is trading at 17.15x.
As of the March quarter shareholding pattern, India Cements promoters held a 28.42% stake in the company.
Among the public shareholders, Radhakishan Damani, along with his brother Gopikishan Damani and other entities own over 25% stake in the company.
Mutual funds own a 4.67% stake, while ELM Park Fund has a 5.58% stake in the company.
India Cements is one of the major players within the sector in South India. The installed capacity of the consolidated entity currently stands at 15.5 MT. Apart from Cement, the company is also engaged in the shipping business.
The company had approved the sale of its Grinding unit at Parli with an installed capacity of 1.1 MTPA to UltraTech for a consideration of ₹315 crore earlier.
The news of the acquisition comes just a few days after Adani Cements announced the acquisition of another south-based cement company Penna Cements at an enterprise value of over ₹10,422 crore.
Shares of India Cements are trading 8.67% higher on Thursday at ₹285.4. The stock had earlier gained 14% on Wednesday. The stock has entered the F&O ban from today’s session, which means no new positions can be created on the stock. The stock will also be excluded from the F&O segment at the end of the August series.
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
