UltraTech Cement
The Aditya Birla Group’s UltraTech Cement is set to acquire a 23% stake in Chennai’s India Cements (ICL). The deal involves buying 70.6 million stocks priced at Rs 267 per stock, summing up to Rs 1,885 crore.
UltraTech Cement board members gave a green light to this significant, non-controlling financial investment. Even though they’ll hold a substantial stake, they won’t rule over ICL. It’s estimated that the deal will close within the next 30 days.
They saw a 6% surge in their share price, hitting a record high of Rs 11,811. At 10:15 a.m., it was still up 4%, at Rs 11,614.
ICL stocks also gained 9%, reaching Rs 288. ICL has an annual cement capacity of 14.45 million tonnes, primarily serving the South Indian market. An industry expert priced UltraTech’s investment as Rs 267 per stock, equating to $85 per tonne enterprise value.
ICL’s revenue for 2023-24 was reported at Rs 5,112 crore, a slight drop from Rs 5,608 crore during 2022-23 but an improvement from Rs 4,858 crore in 2021-22.
This venture by UltraTech, the leading cement company in India, reveals its assertive growth plan, expressing trust in the future development prospects of South India’s cement market.