UltraTech Cement’s open offer for the acquisition of up to 8,05,73,273 paid up equity shares of India Cements Limited will open on September 19 and close on October 3, 2024.
UltraTech Cement’s open offer for the acquisition of up to 8,05,73,273 paid up equity shares of face value of Rs 10 each of India Cements Limited, will open on September 19 and close on October 3, 2024, the company stated in a regulatory filing.
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The deal is worth Rs 3,954 crore, with UltraTech ready to pay Rs 390 per share for the acquisition from the promoters and their associates. The purchase will necessitate a mandatory open offer at the same per-share price. If the open offer is fully subscribed, the total cost of acquisition will go up to Rs 7,100 crore.
Earlier in July, UltraTech Cement had said that the company board has approved the purchase of a 32.72 per cent equity stake in India Cements Limited from the promoters and their associates.
This decision follows UltraTech’s financial investment in June 2024, where it acquired a 22.77 per cent equity stake in India Cements for Rs 1,889 crore at Rs 268 per share.
Further, India Cements stated that the acquirer has appointed Axis Capital as the manager to the open offer. “The offer price will be paid in cash by the acquirer in accordance with Regulation 9(1)(a) of the SEBI (SAST) Regulations,” it said in an exchange filing.
India Cements has a total group capacity of 16 MTPA, including 1.5 MTPA from its subsidiary, Trinetra Cement. This acquisition byUltraTech Cement is poised to enhance its ability to serve the Southern markets and accelerate its path to reaching a 200+ mtpa capacity.
