New Delhi: In a statement to the bourses, India’s largest cement manufacturer UltraTech is all set to offload about 6.5% of its stake in India Cements, a company it acquired last year. Currently, UltraTech owns 81.5% of the South India-focused cement company, once owned by beleaguered former BCCI chief N. Srinivasan.
SEBI has mandated all listed companies to cap their promoter holdings to 75%, as per their Minimum Public Shareholding (MPS) rules. Since this rule was implemented in 2019, companies like AstraZeneca Pharma, Adani Enterprises, Novartis India, to name a few, have done so, giving the markets another opportunity to buy into these companies.
UltraTech will offload these shares in the open market through an offer for sale on August 21-22. The floor price for the offer will be Rs.368, netting the company about Rs.740 crore.
The company has grown organically and inorganically to become one of the world’s biggest cement brands outside of China. A flagship company of the Aditya Birla Group, the company had assumed control of India Cements in July last year, though financial details of the transaction weren’t disclosed.
UltraTech Cement has seen its profits rise consistently over the years, with the FY26Q1 PAT jumping 49% to Rs.2,226 crore, while net sales have risen consistently with a CAGR of 14% over the last five years. The company’s profits have experienced volatility due to higher interest and depreciation costs, but the company has managed to become the kingmaker in the cement industry largely due to its aggressive expansion strategy.
Currently, the company has an installed capacity of 177.7MTPA and is expected to rise to 209.3 MTPA in the coming years.
Following the announcement, India Cement’s shares have risen 4% to Rs.388 at 11.40 AM on August 21.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
