UltraTech Acquires 23% Stake in India Cements for Rs 1,885 Crore in Block Deals

On Thursday, June 27, UltraTech Cement announced that its board has approved the acquisition of a 23% equity stake in India Cements. UltraTech share price will purchase 7.06 crore shares of India Cements at a price of ₹267 per share, bringing the total deal value to approximately ₹1,885 crore.

On Thursday, June 27, a block deal resulted in the sale of a 20% equity stake in India Cements.

India Cements stock surged to an intraday high and a new 52-week high of ₹298.8, trading up 11.11% at ₹292 during the morning session. This rise extended the previous session's 14% gains. Meanwhile, UltraTech Cement's share price increased by 5%, reaching ₹11,700 on the National Stock Exchange.

The promoter group holds a 28.42% stake in India Cements, while renowned investor Radhakishan Damani and his associates own 20.78% of the company. UltraTech Cement announced that the acquisition is expected to be completed within one month and will be conducted as a cash transaction.

UltraTech is the largest cement producer in the country, with a total capacity of 152.7 MTPA. Earlier this year, it acquired the cement business of Kesoram at an enterprise value of ₹7,600 crore. 

At the current market price, India Cements is trading at an Enterprise Value to EBITDA multiple of 17x for the financial year 2025, and 13.69x for the financial year 2026.  

In comparison, UltraTech is trading at an Enterprise Value to EBITDA multiple of 20.8x for the financial year 2025, and 17.15x for the financial year 2026. As per the shareholding pattern for the March quarter, the promoters of India Cements held a 28.42% stake in the company.

India Cements is a significant player in the South Indian cement sector, with an installed capacity of 15.5 MT for the consolidated entity. In addition to cement, the company is also involved in the shipping business. Previously, India Cements approved the sale of its grinding unit at Parli, which has an installed capacity of 1.1 MTPA, to UltraTech for ₹315 crore. 

The news of UltraTech Cement's acquisition follows closely on the heels of Adani Cements announcing its acquisition of Penna Cements, another south-based cement company, at an enterprise value of over ₹10,422 crore.