Consolidation in the Indian cement industry continues.
UltraTech (UCL) has announced further stake acquisition in India Cements (ICL).
- Last month it had acquired 23% stake in ICL from investor Radhakishan Damani for Rs 1885 cr @ an average price of Rs 277/ share
- Now it is acquiring further 32.7% stake from the promoters of ICL for Rs 3,954 crore @ Rs 390/ share
- The price paid to promoters is higher by 41% within one month and that too compared to the price paid to a veteran investor like Mr Damani.
- UCL in line with the regulations has also announced an open offer upto 26% @ Rs 390/ share
Depending on the outcome of the open offer, UCL will hold 55-81% in ICL.