N Srinivasan left the post of CEO of India Cements: stake in the company also ended, reason – UltraTech Cements acquired India Cements.

N Srinivasan has resigned from the post of Managing Director (MD) and Chief Executive Officer (CEO) of India Cements. He no longer had any shareholding in the company nor was he its promoter.

UltraTech Cement, one of the promoters of India Cement, has purchased 55.49% stake in the company. UltraTech has acquired this holding by investing a total of Rs 7000 crore in two phases. According to the terms of this deal, Srinivasan had to leave his post.

Even Chennai Super Kings is no longer a partner

In the filing, the company wrote, ‘The company’s former promoters, Chitra Srinivasan, Roopa Gurunath, EVVS Finance and Investments Private Limited, SK Ashok Balaje, Financial Services Trust, Security Services Trust and Chennai Super Kings Cricket Limited have stepped down from the company. Now he does not hold equity shares of India Cement. He is no longer a promoter or member of the company.

In July, promoters had approved to sell 32.72% stake.

In fact, on July 28 this year, UltraTech had purchased 32.72% stake in India Cement. Then the company’s stake in India Cement was 22.77%. This deal has been approved by the Competition Commission of India (CCI) on December 24.

Bought 22.77% stake in June for ₹1,885 crore

The board of directors of UltraTech Cement had in June approved the acquisition of 22.77% stake in India Cements. The company bought 7.06 crore shares of India Cements at Rs 268 per share. The total value of this deal was around Rs 1,885 crore.

UltraTech can buy 26% more stake

Apart from this, the Fair Trade Regulator has also approved UltraTech Cement to acquire up to 26% of the paid-up equity share capital of India Cements through an open offer. UltraTech manufactures and sells gray cement, white cement, ready-mix concrete, clinker and building products in India.

UltraTech’s profit decreased by 36% in the second quarter

Aditya Birla Group-owned cement company UltraTech’s consolidated profit in the second quarter of FY 2024-25 declined by 36% year-on-year (YoY) to ₹820 crore. The company had made a profit of ₹1,280 crore in the same quarter a year ago (Q2FY24).

UltraTech shares rose 3.39% in one year

Shares of UltraTech Cement fell 0.98% to close at Rs 11,360 on Tuesday, December 24. The company’s stock has fallen 0.85% in the last one month. Whereas, it has given positive returns of 4.74% in the last 6 months and 13.39% in one year. Ultrateca shares have risen 8.56% this year.

UltraTech is the country’s largest cement company.

UltraTech is the largest cement company in the country, with a total production capacity of 152.7 MPTA (152.7 million tonnes per annum). Earlier this year, the company had acquired Kesoram’s cement business for an enterprise value of ₹7,600 crore.

India Cement produces 1.45 crore tonnes of cement annually

The capacity of India Cement is 14.45 mtpa i.e. the company is capable of producing 1.45 crore tonnes of cement in a year. Of this, 1.30 crore tonnes is produced from Tamil Nadu and 15 lakh tonnes from Rajasthan. The company’s shares have given returns of 26.72% in last one month, 43.99% in 6 months and 73.27% in one year. India Cement shares have risen 42.37% this year.

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UltraTech bought 32.72% stake of India Cement: Deal done for Rs 3,954 crore, now the company has total 55.49% stake.

The board of Aditya Birla Group-owned cement company UltraTech has approved the purchase of 32.72% stake in India Cement Limited. In this deal, UltraTech will have to pay a total of Rs 3,954 crore at the rate of Rs 390 per share.

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