The Ultratech board has approved making a financial investment to purchase up to 7.06 crores equity shares of The India Cements Ltd at a price of up to ₹267 per share. This non-controlling financial investment constitutes around 23 per cent of the equity share capital of ICL in a deal valued at around ₹1,885 crore.
This comes close on the heels of the Adani Group-owned Ambuja Cements acquiring Penna Cement Industries Ltd (PCIL) for ₹10,422 crore. The acquisition will enhance Ambuja’s capacity to 103 MTPA from the current 89 MTPA, after the ongoing projects are completed in the next one year.
The Gautam Adani-led Ambuja has been on an acquisition spree to catch up with the market leader, Aditya Birla Group-owned UltraTech Cement, which has a capacity of 153 MTPA across the country. Recently, UltraTech Cement acquired a 1.1 million tonne per annum grinding unit and captive railway siding at Parli in Maharashtra from India Cements for ₹315 crore. Overall, Ultratech plans to invest Rs 32,400 crore in the next three years as part of its ongoing expansion plans.
The country’s rising expenditure on infrastructure projects and steady growth in demand for housing, aided by various government schemes, have led to a robust increase in cement sales. The company plans to increase its capacity to 200 MTPA by FY27, translating into 12.3 per cent capacity growth CAG.
Ultratech shares were up 4.26% at 10 am on Thursday.