Indian Cements shares rallied as much as 11% to hit an intra-day high of Rs 376.30 on the BSE. The rise in share price came after the Competition Commission of India (CCI) approved the acquisition of the company by Ultratech Cements. The stock of India Cements is just 2.4% away from its 52-week high. Shares of UltraTech Cements rose 1.4% to an intra-day high of Rs 11,585.40.
UltraTech Cement will acquire up to 58.72% stake in India Cements. Out of 58.72%, the 32.72% stake of India Cements will acquired from the promoters and Sri Saradha Logistics and up to 26% stake will be acquired through an open offer.
“The proposed combination envisages UltraTech Cement’s (UltraTech/Acquirer) acquisition of (i) 32.72% of the paid-up equity share capital of The India Cements (India Cements/Target) from the promoters and members of the promoter group of India Cements and Sri Saradha Logistics, and (ii) up to 26% of the paid-up equity share capital of India Cements by way of an open offer,” read a press release.
India Cements Vs Nifty 50
The stock of India Cement has given a return of 9.2% in the past five trading sessions. It has risen 2.3% in the past one month and 41% from year to date. However, the stock of UltraTech Cement has fallen 3.8% in the previous five trading sessions. It has fallen 0.05% in the last one month, although has given a return of more than 9% from year to date.
To compare, the benchmark index, Nifty 50 has fallen 3.4% in the last five trading sessions. The index has wiped out 1.9% of investors’ wealth in the last one month. However, it has risen 9.2% from year to date.
India Cements is a publicly listed company in India and operates both core and non-core businesses. The core business of India Cements is the manufacture and sale of grey cement and ready-mix concrete.
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