Agency
new delhi, Dec 27
UltraTech Cement, on Friday announced the acquisition of an 8.69 per cent of minority stake in Meghalaya-based Star Cement for up to Rs 851 crore. The acquisition comes after UltraTech completed the acquisition of a controlling stake in India Cements, further solidifying its dominance in the Indian cement sector.
The deal marks UltraTech’s strategic investment in a key player in the north-eastern cement market.
Star Cement, with an installed capacity of 7.7 million tonnes per annum (MTPA), has a strong presence in the north-eastern region and is rapidly expanding in West Bengal and Bihar. According to UltraTech, some of Star Cement’s promoter entities approached the company with the proposal to sell their equity holdings. After reviewing the proposal, UltraTech’s board approved the investment to acquire up to 3.70 crore equity shares of Star Cement at a price not exceeding Rs 235 per share, excluding statutory levies.
The total cost of the acquisition is expected to not exceed Rs 851 crore, excluding the Securities Transaction Tax (STT).
Star Cement, established in November 2001, reported a turnover of Rs 2,910.66 crore in FY24. With this acquisition, UltraTech aims to further strengthen its footprint in the cement market, especially in the rapidly growing markets of eastern India.
UltraTech Cement, part of the Aditya Birla Group, currently has an installed capacity of 156.66 MTPA of grey cement, reinforcing its position as the largest cement producer in India.
