UltraTech Cement announced that its picking up a 23% stake in India Cements; Both stocks hit a 52-week high post this announcement
UltraTech Cement Share Price Today: UltraTech Cement on Thursday announced that its board has approved picking up a 23 per cent stake in India Cements for Rs 267 per share in a deal valued at around Rs 1,885 crore.
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India Cements stock rose 14 per cent to a 52 week high of Rs 299 on BSE. Market cap of the firm rose to Rs 9,093 crore. The stock has risen 31.31 per cent in a year and gained 7.58 per cent in 2024. A total of 625.11 lakh shares of the firm changed hands amounting to a turnover of Rs 1,662.34 crore on BSE.
On the other hand, shares of UltraTech Cement too rose to their 52-week high of Rs 11,766,25 on BSE. Market cap of UltraTech Cement climbed to Rs 3.40 lakh crore.
UltraTech intends to acquire this stake, which is 7.06 crore shares at an average price of Rs 267 per share. The total cost to acquire this stake comes up to Rs 1,885 crore.
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India Cements Ltd. witnessed a large trade take place in the pre-market block window. As many as 6 crore shares or 19.4 per cent of the total equity changed hands in the large transaction. The shares changed hands at an average price of Rs 265 per share.
UltraTech is the largest cement player in the country with an overall capacity of 152.7 MTPA. Earlier this year, it had acquired the cement business of Kesoram at an enterprise value of Rs 7,600 crore.
At the current market price, India Cements is trading at the financial year 2025 Enterprise Value tp EBITDA multiple of 17x, while for the financial year 2026, it is trading at 13.69 times.
In comparison, UltraTech is trading at the financial year 2025 EV / EBITDA of 20.8x, for the financial year 2026, it is trading at 17.15x.
As of the March quarter shareholding pattern, India Cements promoters held a 28.42 per cent stake in the company.
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Among the public shareholders, Radhakishan Damani, along with his brother Gopikishan Damani and other entities owns over 25 per cent stake in the company.
Mutual funds own a 4.67 per cent stake, while ELM Park Fund has a 5.58 per cent stake in the company.
India Cements is one of the major players within the sector in South India. The installed capacity of the consolidated entity currently stands at 15.5 MT. Apart from Cement, the company is also engaged in the shipping business.
The company had approved the sale of its Grinding unit at Parli with an installed capacity of 1.1 MTPA to UltraTech for a consideration of Rs 315 crore earlier.
The news of the acquisition comes just a few days after Adani Cements announced the acquisition of another south-based cement company Penna Cements at an enterprise value of over Rs 10,422 crore.
Shares of India Cements are currently trading 8.67 per cent higher on Thursday at Rs 285.4. The stock has entered the F&O ban from today’s session, which means no new positions can be created on the stock. The stock will also be excluded from the F&O segment at the end of the August series.
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