CHENNAI: Close on the heels of the Competition Commission of India (CCI) approving UltraTech Cement‘s acquisition of India Cements, the latter has announced that it has become a subsidiary of UltraTech.
The development will facilitate UltraTech adding India Cements’ 14.5 million tonnes capacity spread across Tamil Nadu, Telangana, Andhra Pradesh, and Rajasthan to its consolidated production capacity of about 155 million tonnes per annum (MTPA) of grey cement.
In a regulatory filing late on Tuesday evening, India Cements said, UltraTech Cement has acquired 10,13,91,231 equity shares representing 32.7% of the equity share capital of the company, in accordance with Regulation 22(2) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. UltraTech’s aggregate shareholding in the company has increased to 17,19,55,887 equity shares representing 55.5% of the company’s equity share capital including existing shareholding of 7,05,64,656 equity shares (22.8%). Consequently, the company has become a subsidiary of UltraTech with effect from Dec 24, 2024, India Cements informed the stock exchange.
In July this year, India’s largest building materials maker, Birla struck a deal with India Cements vice-chairman & MD N Srinivasan and his family to acquire their cement business for Rs 3,954 crore. On Dec 6, 2024, UltraTech Cement and India Cements informed the stock exchange that notices have been received from the CCI over the latter’s takeover by billionaire Kumar Mangalam Birla’s company. Last week, the fair trade regulator gave its nod for the acquisition.
It may be recalled that India Cements has been facing financial issues in recent quarters. One of the largest cement manufacturers in south India, the more than 75-year-old Chennai-headquartered company is associated with landmark projects including the Pamban Bridge in Rameswaram, IIT Madras, and the Swami Vivekananda Rock Memorial in Kanyakumari.
