India Cements shares rose 11% in Monday's (December 23, 2024) trade, reaching an intraday high of Rs 376.3 per share on the BSE. The stock increased in value when the Competition Commission of India (CCI) approved UltraTech Cement's acquisition bids.
India Cements shares were up 9.19 percent to Rs 370.15 per share on the BSE. In comparison, the BSE Sensex was up 0.72% to 78,600.18. Indian Cements' market capitalisation stood at Rs 11,472.39 crore. The 52-week high for India Cements was Rs 385.5 per share, while the 52-week low was Rs 172.55 per share. Meanwhile, UltraTech Cement shares were up 0.17 percent at Rs 11,444.25 per share.
"We write this to inform you that the Competition Commission of India vide its communication dated December 20, 2024, granted its approval to the Acquirer," according to the record.
The exchange filing states that CCI authorized UltraTech's purchase of 10,13,91,231 equity shares at a price of Rs 10 apiece. This amounts to 32.72 percent of the company's equity share capital, which is held by the promoters, promoter group members, and other shareholders.
On July 28, UltraTech Cement announced the acquisition of a 32.72 percent share in India Cements Ltd from promoters and their affiliates for Rs 3,954 crore, expanding its presence in the highly competitive and rapidly rising southern cement market.
Moreover, UltraTech has declared an open offer of Rs 3,142.35 crore to acquire a 26% stake in India Cements from its shareholders.
Following the acquisitions of Kesoram and India Cements, the brokerage expects UltraTech would have net debt of less than Rs 20,000 crore.
"In our view, both companies may refrain from seeking leverage to gain capacity share further; more so, for the fear of further protracting competitive intensity," the filing continued.
