File image of N Srinivasan Photo credit: PTI
Leading cement maker UltraTech has completed the acquisition of 32.72% stake in India Cement Limited from the promoters, after N. Srinivasan and other promoters of the south-based cement maker have resigned.
The Aditya Birla Group firm has completed the acquisition of 10.13 crore equity shares of India Cements Limited (ICL), representing 32.72% of the equity share capital of the company.
“This represents 55.49% of the company’s shareholding of 17.19 crore equity shares of ICL, with the existing shareholding of 7.05 crore equity shares (22.77%) of ICL’s equity share capital, Ultratech informed on Tuesday (December 24, 2024).
Consequently, ICL “has become a subsidiary of the Company” with effect from December 24, 2024, it added.
On Wednesday (December 25, 2024), ICL informed that N Srinivasan has stepped down as Vice-Chairman and Managing Director as a result of the completion of the transaction and control of the existing promoters in the company.
Also, his daughter Rupa Gurunath, wife Chitra Srinivasan and VM Mohan have also resigned from the company’s board, according to a regulatory filing by ICL.
Further, “as per the close of business on December 24, 2024, Ultratech has acquired sole control of the company and has become the promoter of the company as per LODR norms”, informed ICL.
“Further, the board also recorded the resignation of certain independent directors – S Balasubramaniam Adityan, Krishna Srivastava, Lakshmi Aparna Sreekumar and Sandhya Rajan with effect from the close of business hours on December 25, 2024,” it added.
The board also appointed four new directors namely KC Jhanwar, Vivek Aggarwal, ER Raj Narayanan and Ashok Ramachandran. Besides, three independent directors – Alka Bharucha, Vikas Balia and Sukanya Kripalu – have come on the board of ICL.
Last week, the Competition Commission of India (CCI) cleared a deal worth over ₹ 7,000 crore, in which billionaire Kumar Mangalam Birla had proposed to acquire a majority stake in India Cements Ltd, promoting UltraTech Cement.
“The fair trade regulator has also allowed Ultratech Cement to purchase equity shares of up to 26 per cent of the paid-up capital of India Cement through an open offer,” it added.
On July 28, Ultratech Cement announced the acquisition of 32.72% stake in India Cement Limited (ICL) from the promoter and its associates in a deal worth Rs 3,954 crore, expanding its footprint in the highly competitive and fast-growing southern cement market. .
Also, Ultratech has also announced an open offer of ₹ 3,142.35 crore to acquire 26 per cent stake in ICL from its shareholders.
Earlier in June, Ultratech had bought 23 percent of ICL’s shares.
It acquired the Damani Group’s stake in Bharat Cement Limited (ICL) through two block deals estimated at around ₹1,900 crore.
The Indian cement industry is witnessing consolidation between the two corporate houses – Kumar Mangalam Birla-led Aditya Birla Group and Gautam Adani-led Adani Group – and intense competition between smaller players.
The Adani Group plans to increase its production capacity to 140 MTPA by FY28, slightly lower than market leader Ultratech’s current gray cement capacity of 156.66 MTPA.
Adani Cement recently announced the acquisition of CK Birla Group firm Orient Cement, through which it will acquire 100 MT (million tonnes) of annual capacity by the end of FY25 and increase its overall market share in the country by 2%.
It has completed the acquisition of Saurashtra-based Sanghi Industries, and Penna Industries and recently announced the acquisition of CK Birla Group firm Orient Cement as part of its inorganic growth strategy.
Aditya Birla Group also plans to maintain its leadership with 200 MTPA capacity by FY27. Ultratech is also in the process of acquiring the cement business of Kesoram Industries and is awaiting regulatory approval.
published – December 25, 2024 at 10:43 am IST