Kumar Mangalam Birla-led UltraTech Cement has significantly increased its stake in India Cements by acquiring an additional 32.72% of equity shares. With this acquisition, UltraTech’s total shareholding in India Cements has risen to 55.49%, equating to 17,19,55,887 equity shares, up from the previous 22.77% stake (7,05,64,656 shares). This makes UltraTech the majority shareholder in India Cements.
The acquisition was completed under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. As a result, India Cements has now become a subsidiary of UltraTech Cement, effective immediately.
In light of the acquisition, N. Srinivasan resigned as the Chief Executive Officer (CEO) of India Cements on Wednesday. His resignation follows the clearance of acquisition by the Competition Commission of India (CCI), which enabled UltraTech Cement to acquire a majority stake in India Cements.
India Cements announced that following the completion of the acquisition and the cessation of control by the existing promoters, N. Srinivasan has stepped down from his position as Vice Chairman and Managing Director. Additionally, his daughter Rupa Gurunath, wife Chitra Srinivasan, and V. M. Mohan have also resigned from the company’s board.
In connection with the leadership changes, several independent directors have also stepped down. S. Balasubramanian Adityan, Krishna Srivastava, Lakshmi Aparna Sreekumar, and Sandhya Rajan resigned from the board effective from the end of business hours on December 25, 2024.
Following the acquisition, UltraTech Cement has gained sole control of India Cements and is now the new promoter of the company. This change was formally recorded on December 24, 2024, in accordance with the Listing Obligations and Disclosure Requirements (LODR) Regulations.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Dec 26, 2024, 9:22 AM IST
We're Live on WhatsApp! Join our channel for market insights & updates