UltraTech buys 32.72% in India Cements for Rs 3,954 cr

The India Cements opportunity is an exciting one as it enables UltraTech to serve the Southern markets more effectively and also accelerates our path to over 200 MTPA capacity -- Kumar Mangalam Birla, chairman, Aditya Birla Group

New Delhi: Leading cement manufacturer UltraTech will acquire an additional 32.72 per cent stake in India Cements Ltd (ICL) from the promoters of the South-based company for Rs3,954 crore. The board of the Aditya Birla firm on Sunday approved the proposal to acquire the promoters’ 32.72 per cent stake at Rs390 per share, UltraTech said in a regulatory filing on Sunday. It has entered into three share purchase agreements to acquire 32.72 per cent of the equity share capital of ICL from the promoter family led by Srinivasan N and Gurunath, along with the holding entities.

After the completion of the Rs3,954 crore deal, UltraTech’s stake in India Cements Ltd will reach over 55 per cent, mandating it to go for an open offer as per the Sebi regulations.

The price offered by UltraTech is 4.1 per cent higher than the ICL shares’ closing price of Rs374.60 last Friday.