UltraTech Cement, on Friday announced the acquisition of an 8.69 per cent of minority stake in Meghalaya-based Star Cement for up to Rs 851 crore. The acquisition comes after UltraTech completed the acquisition of a controlling stake in India Cements, further solidifying its dominance in the Indian cement sector.
The deal marks UltraTech’s strategic investment in a key player in the north-eastern cement market.
Star Cement, with an installed capacity of 7.7 million tonnes per annum (MTPA), has a strong presence in the north-eastern region and is rapidly expanding in West Bengal and Bihar.
Also Read HAL shares in focus after Rs 13,500 crore Su-30 MKI deal with Defence Ministry Jubilant FoodWorks shares slip over 3%; promoters acquire 40% in Coke’s India bottlers Livguard plans to incur capex of Rs 3,360 cr in 5 years Vodafone Idea board approves raising Rs 1,980 crore through Preferential Share Issue
Also ReadThe future of India’s ethanol industry: Opportunities and challenges in achieving 20% blending by 2025
According to UltraTech, some of Star Cement’s promoter entities approached the company with the proposal to sell their equity holdings. After reviewing the proposal, UltraTech’s board approved the investment to acquire up to 3.70 crore equity shares of Star Cement at a price not exceeding Rs 235 per share, excluding statutory levies.
The total cost of the acquisition is expected to not exceed Rs 851 crore, excluding the Securities Transaction Tax (STT).
Star Cement, established in November 2001, reported a turnover of Rs 2,910.66 crore in FY24. With this acquisition, UltraTech aims to further strengthen its footprint in the cement market, especially in the rapidly growing markets of eastern India.
Also ReadVA Tech Wabag bags order worth Rs 700 crore for waste water treatment plants in Zambia
UltraTech Cement, part of the Aditya Birla Group, currently has an installed capacity of 156.66 MTPA of grey cement, reinforcing its position as the largest cement producer in India.
(With PTI Inputs)
» Read More
