Shares Surge: As UltraTech Acquires 8.7% Stake In Star Cement For Rs. 851 Crore
The share price of Star Cement increased by much to 8% in early trading after UltraTech revealed it was buying a stake.
UltraTech Acquires 8.7% Stake In Star Cement For ₹851 Crore
Stock Market Today: UltraTech Cement on Friday acquired an 8.7% stake in Star Cement for Rs. 851 crore, marking a significant investment in the cement industry. In fact, following the announcement, shares of Star Cement increased by over 7% to ₹247.30 in early trade.
The strategic move entails purchasing up to 3.70 crore equity shares of Star Cements at a price of ₹235 per share, minus STT, stamp tax, and other levies.
The merger and acquisition were approved at a meeting of UltraTech Cement's Board of Directors, and it represents a non-controlling interest in Star Cement. UltraTech Cement sees this transaction as part of a strategic expansion after previously acquiring a majority position in India Cements Limited.
On Friday, Star Cement's share price began at ₹237.80 on the BSE, up from the previous close of ₹229.75. In fact, Star Cement's share price was approaching its 52-week or 1-year high of ₹238.35.
After getting clearance from the Competition Commission of India earlier this month, UltraTech Cement announced the acquisition of a 32.72% stake in India Cement Limited.
Consequently, India Cements Limited has become a subsidiary of UltraTech Cement with effect from December 24, 2024.
