UltraTech Cement, an Aditya Birla group company, has agreed to buy a 23 percent stake in India Cements for a consideration of up to Rs 1,885 crore. The transaction is priced at Rs 267 per share. Prior to the deal, the promoter group held a 28.4 percent stake, while veteran investor R.K. Damani and his family held a 20.8 percent stake in India Cements. As per news sources, Damani has sold his entire stake in India Cements.With an aggregate capacity of 152.7 MTPA, Ultratech enjoys a market share of ~23 percent on a pan-India basis. However, its market share in the south is just about 10-11 percent. The management had earlier indicated that it was looking to consolidate its presence in the south, which remains very fragmented because of many small and mid-sized players. In our view, UltraTech will be looking to further increase its stake in the company and may launch an open offer in the coming months to gain control over the operations.
Vidya is an accomplished news writer known for her expertise in transforming complex news stories into engaging infographics. With a sharp eye for detail and a talent for visual storytelling, Vidya makes intricate news captivating for our audience.
+ There are no comments
Add yours