Shares of India Cements surged 14% on Thursday, hitting a 52-week high of ₹ 299 on the BSE. This sharp rise follows news that UltraTech Cement plans to acquire a 23% stake in the company. The market capitalisation of India Cements climbed to ₹ 9093 crore.
UltraTech Cement, part of the Aditya Birla Group, confirmed that its Board of Directors approved the purchase of up to 70.6 million shares of India Cements at ₹ 267 per share. This transaction, valued at ₹ 1662.34 crore, is expected to be completed within a month.
The stock of India Cements has seen a significant rise of 31.31% over the past year and has gained 7.58% in 2024. On Thursday, a total of 625.11 lakh shares were traded on the BSE.
Meanwhile, UltraTech Cement’s shares also reached a 52-week high of ₹ 11,766.25, pushing its market cap to ₹ 3.40 lakh crore.
In an official statement, UltraTech Cement said, ‘The Board of Directors of the Company at its meeting held today approved making a financial investment to purchase up to 7.06 crores 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 up to ₹ 267/- per share. This non-controlling financial investment constitutes around 23% of the equity share capital of India Cements Limited.’
This strategic move by UltraTech is expected to bolster its presence in the cement industry and strengthen its financial position.
