UltraTech Cement plans to buy a 32.72% stake in India Cements for Rs 3,954 crore, with shares priced at Rs 390 each. This deal also includes an open offer priced 4% above Friday’s closing price. Earlier in June, UltraTech bought a 23% stake in India Cements through block deals at Rs 269 per share.
UltraTech Cement to Boost Stake in India Cements to 55.49% with Rs 3,954 Crore Acquisition and Open Offer
UltraTech Cement has finalized several deals on July 28, 2024, to buy up to 10.13 crore shares in India Cements.
The board of UltraTech Cement has approved buying a 32.72% stake in India Cements from its promoters and their associates. This adds to their previous 22.77% stake acquired in June at Rs 268 per share. The new deal, worth Rs 3,954 crore at Rs 390 per share, will increase UltraTech’s total ownership to 55.49%, requiring a mandatory open offer at the same price.
UltraTech has also announced an open offer to purchase up to 8.05 crore shares, or 26% of the equity, from public shareholders at Rs 390 per share, totaling around Rs 3,142.39 crore, in line with SEBI rules.
In June, UltraTech bought a 23% stake in India Cements through block deals at Rs 269 per share.
Additionally, UltraTech will acquire 1.99 crore shares (6.44% of the equity) from Rupa Gurunath and other trust members for Rs 778.21 crore. They will also buy 1,33,16,783 shares (4.30% of the equity) from Sri Saradha Logistics Private Limited for Rs 519.35 crore.
These deals are known as the “Primary Acquisition.” They will only go through if all required legal and regulatory approvals are received.
N. Srinivasan, who is set to turn 80 in January, has led India Cements since 1989, after his father, T.S. Narayanaswami, passed away. His daughter, Rupa Gurunath, and his wife, Chitra Srinivas, who are both involved in the company, have reportedly shown no interest in running the business once Srinivasan retires.
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