UltraTech bought India Cement: UltraTech Cement acquired a significant stake in India Cement to strengthen its position in the southern cement market. On Friday, the Competition Commission (CCI) approved UltraTech Cement Limited's acquisition proposal of India Cement Limited for Rs 3,954 crore. The deal was earlier scrutinized by the Competition Commission earlier this month and now after the clarifications given by UltraTech, the commission has approved it.

Acquisition and Open Offer Information

In July this year, Aditya Birla Group flagship UltraTech Cement announced the purchase of 32.72% stake in India Cement from its promoters and their associates for Rs 3,954 crore. The stake will be bought from Srinivasan N, Chitra Srinivasan, Roopa Gurunath, and S K Ashok Balaji (28.42%) and Sri Saratha Logistics (4.30%).

As of September, UltraTech already held a 22.77% stake in India Cement. After this acquisition, UltraTech's stake will increase to 55.49%, forcing it to make an open offer to buy an additional 26% stake under SEBI (Securities and Exchange Board of India) regulations. The amount of this open offer is Rs 3,124.25 crore, which is dependent on other regulatory approvals and was on hold pending CCI's approval.

Impact on the stock market

In the stock market, shares of UltraTech Cement fell 2.14% to close at Rs 11,424.7 per share before CCI's approval, while shares of India Cement fell 0.43% to close at Rs 339 per share. Now the stock market will open on Monday, so there can be movement in both these stocks.

This acquisition is a significant step for UltraTech to have a strong presence in the Southern cement market, especially in Tamil Nadu. This move is part of UltraTech's strategy to expand its presence in Southern India.

Deadline and next steps

While the CCI approval is a key milestone, the deal is subject to the completion of the open offer and other regulatory approvals. UltraTech is now set to further expand its cement business, which has significant future potential in Southern India.