CHENNAI: Soon after the Competition Commission of India (CCI) approved the acquisition of India Cements by Ultratech Cement, India Cements announced that it has become a subsidiary of Ultratech.
With this development, Ultratech will expand India Cements’ 14.5 million tonne production capacity across Tamil Nadu, Telangana, Andhra Pradesh and Rajasthan to approximately 155 million tonne per annum (MTPA) of gray cement. It will be easy to add to the consolidated production capacity of
India Cements said in a regulatory filing late on Tuesday night that Ultra Tech Cement has acquired 101,391,231 shares representing 32.7% of the company’s equity capital pursuant to Section 22(2) of the Securities and Exchange Commission Regulations. Announced. Compliant with India (Substantial Acquisition of Shares and Acquisitions) Regulations, 2011. UltraTech’s total shareholding in the company is 17,19,55,887 shares representing 55.5% of the share capital of the Company, including existing shares of 7,05,64,656 shares (22.8%). As a result, the company will become a subsidiary of Ultratech from December 24, 2024, India Cements informed the stock exchanges.
In July this year, Birla, India’s largest building materials maker, entered into an agreement with India Cements’ Vice Chairman and MD N. Srinivasan and his family to acquire the cement business for Rs 3,954 crore. On December 6, 2024, Ultratech Cement and India Cements announced to stock exchanges that they had received notices from the CCI regarding the acquisition of the latter by billionaire Kumar Mangalam Birla’s company. Last week, the Fair Trading Regulator gave its consent to the acquisition.
Recall that India Cements has been facing financial issues in recent quarters. One of the largest cement manufacturers in South India, the over 75-year-old Chennai-based company has been involved in landmark projects such as Rameswaram, Pamban Bridge at IIT Madras and the Swami Vivekananda Rock Monument at Kanyakumari. I’m involved.
