UltraTech Cement, India’s largest cement producer by capacity, has announced the acquisition of an 8.69% stake in Star Cement Ltd. from its promoter group for ₹851 crore. According to an exchange filing on Friday, December 27, UltraTech disclosed that the shares were purchased at ₹235 per share through the block deal window. The company clarified that this acquisition is a non-controlling minority stake.
On December 27, 2024, UltraTech Cement share price jumped by 0.70%, reaching ₹11,508.90 at 10:38 AM (IST). According to BSE data, the stock recorded a total traded volume of 991 shares, resulting in a turnover of ₹1.14 crore.
Based in Meghalaya, Star Cement reported an overall turnover of ₹2,910 crore in FY24. The company holds a significant presence in the northeastern market, commanding a 26.5% market share.
Start Cement operates with a grinding capacity of 7.7 MTPA and a clinker capacity of 6.1 MTPA, supported by an extensive dealer network of approximately 2,000 and a retailer network of over 12,500. Premium sales constitute 10.6% of its overall sales, according to the company’s September quarter investor presentation.
Star Cement also emerged as the preferred bidder for six limestone blocks in Rajasthan’s Beawar district during the September quarter. These blocks cover 95.68 hectares and are estimated to hold geological reserves of 63.9 million tonnes.
Additionally, the company is advancing its expansion plans with two upcoming units in Assam’s Silchar and Jorhat districts, supported by a capex plan of ₹380 crore for the second half of FY24.
On December 27, 2024, Star Cement share price surged by 3.39%, reaching ₹237.55 at 10:37 AM (IST). According to BSE data, the stock recorded a total traded volume of 2.27 lakh shares, resulting in a turnover of ₹5.47 crore.
Earlier this week, UltraTech completed the acquisition of a 32.72% stake in India Cements, triggering an open offer for the company at ₹390 per share. This acquisition has elevated India Cements to a subsidiary of UltraTech, contributing an additional 14.5 million tonnes to its production capacity.
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Published on: Dec 27, 2024, 11:15 AM IST
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