UltraTech Cement Acquires Stake in India Cements

UltraTech Cement, part of the Aditya Birla Group, has agreed to acquire a 32.72% stake in India Cements from N Srinivasan and his family for Rs 3,954 crore, adding to the 23% stake it purchased earlier in June. This acquisition, valuing India Cements at Rs 390 per share, will trigger a mandatory open offer for an additional 26% stake from public shareholders, potentially raising the total cost to Rs 7,100 crore. Despite the takeover, N Srinivasan assured India Cements employees that their careers are secure and there will be no changes in management until the acquisition is complete. UltraTech aims to enhance its presence in the southern Indian market, where it has faced limitations due to limestone scarcity. The ownership of the Chennai Super Kings IPL team, controlled by India Cements promoters, will remain unaffected by this acquisition. If all regulatory approvals are obtained, India Cements will become a subsidiary of UltraTech, consolidating its position as India's largest cement maker.