Following this announcement, shares of gained 0.80% to trade at Rs 377.60 on the BSE.
With the latest announcement, UltraTech Cement will become the majority shareholder in India Cements with a holding of 55.49% stake.
UltraTech had made a financial investment in India Cements to acquire 22.77% equity at a price of Rs 268 per share in June 2024.
"Post this financial investment, the promoter group approached us as they wanted to sell their holding in the company, and we found it appropriate to acquire their stake in the company,” the Aditya Birla Group company stated.
Post signing of SPA and obtaining regulatory approvals, UltraTech will pay Rs 3,954 crore at Rs 390 share for buying 32.72% stake in India Cements from the promoters & their associates. This will trigger a mandatory open offer, at Rs 390 share. The open offer will be done subsequently after obtaining all regulatory approvals.
The open offer price is 4.1% higher than India Cements share’s closing price of Rs 374.60 apiece last Friday.
Kumar Mangalam Birla, chairman, Aditya Birla Group, said: "UltraTech Cement's investments over the years, both organic and inorganic, have been designed to propel India to become a building solutions champion globally.
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 200+ MTPA capacity."
UltraTech Cement is the cement flagship company of the Aditya Birla Group. It is the third largest cement producer in the world, outside of China, with a consolidated Grey Cement capacity of 154.86 MTPA.
The cement major’s consolidated net profit rose marginally to Rs 1,696.59 crore in Q1 FY25 as against Rs 1,688.45 crore in Q1 FY24. Revenue from operations rose 1.87% year on year (YoY) to Rs 18,069.56 crore in the quarter ended 30 June 2024.