Shares of India Cements surged 10%, in the early trading session today on BSE, to hit its new 52-week high of Rs 289.20. This comes after the UltraTech Cement board approved a non-controlling 23% stake acquisition in the former.
The deal size is estimated to be at Rs 1,885 crore and about six crore shares have changed hands during the pre-market session, wherein UltraTech Cement bought the shares of India Cements at a price of Rs 267 per share.
“The Board of Directors of the Company at its meeting held today approved making a financial investment to purchase upto 7.06 crore equity shares of The India Cements Limited, a company incorporated under the Indian Companies Act, 1913, having its registered office at Dhun Building, 827, Anna Salai, Chennai 600 002, (“ICL”) at a price of upto Rs 267/- per share. This non-controlling financial investment constitutes around 23% of the equity share capital of ICL,” said UltaTech in a filing to the stock exchanges.
Indicative time period for completion of acquisition is said to be one month.Also read: Vedanta Resources sells 2.63% stake in Indian arm, raises Rs 4,184 crore
In the financial year 2024, India Cements had a turnover of Rs 5,112 crore, rising from Rs 5,608 crore in FY23.
While the shares of India Cements went up to touch the upper circuit, shares of UltraTech Cement also surged 6% on BSE to its new all-time high of Rs 11,811.
Shares of India Cements have increased 32.5% in the last one year, while they have surged by 8.6% in the current calendar year.
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