India Cements up 11%; CCI Gives Acquisition Nod to UltraTech
Shares of India Cements soared as much as 11% in today’s trading session to clock an intra-day high of ₹376.30 on the BSE.
India Cements up 11%; CCI Gives Acquisition Nod to UltraTech
Shares of India Cements soared as much as 11% in today’s trading session to clock an intra-day high of ₹376.30 on the BSE. The rise can be attributed to Competition Commission of India’s (CCI) approval to acquire the company by Ultratech Cements. Shares of UltraTech Cements surged by intra-day high of 1.4% to ₹11,585.40.
UltraTech Cements will acquire up to 58.72% stake in India Cements. About 32.72% stake of India Cements will be acquired from the promoters and Sri Saradha Logistics, while the remaining will be acquired through an open offer.
The press release add, “The proposed combination envisages UltraTech Cement’s (UltraTech/Acquirer) acquisition of (i) 32.72% of the paid-up equity share capital of The India Cements (India Cements/Target) from the promoters and members of the promoter group of India Cements and Sri Saradha Logistics, and (ii) up to 26% of the paid-up equity share capital of India Cements by way of an open offer.”
Overview of India Cements
Over the last five trading sessions, India Cements surged by 9.2%, while it has risen 41% from year to date. On the other hand, shares of UltraTech Cement fell by 3.8% in the last five trading sessions and about 9% from year to date.
Nifty slipped by nearly 3.5% in the last five trading sessions, thereby wiping out 1.9% of investors’ wealth in one month. However, it has given returns of nearly 9.2% on a yearly-basis.
Founded in 1946, India Cements is engaged in the manufacture and sale of grey cement and ready-mix concrete.