UltraTech Cement Ltd, one of India’s leading cement manufacturers, has announced a significant acquisition plan involving the cement business of Kesoram Industries Ltd. This move marks a major strategic advancement in the cement sector for UltraTech, reinforcing its position in a highly competitive market.
The deal, structured as an all-stock transaction, is valued at Rs 5,379 crore. Under the terms of the agreement, UltraTech Cement will issue one share for every 52 shares of Kesoram Industries. This arrangement implies an offer price of Rs 173.15 per share, which is a 24.1% premium over Kesoram’s last closing price of Rs 139.45. This strategic acquisition is expected to extend UltraTech’s footprint in the fragmented and rapidly growing Western and Southern markets in India.
The acquisition will grant UltraTech ownership of two integrated cement units located in Karnataka and Telangana, further boosting its capacity in the sector. This move represents a significant expansion for UltraTech Cement, as it continues to strengthen its presence across various regions in India.
This development is a notable one in the Indian cement industry, illustrating the ongoing consolidation and competitive dynamics within the sector. UltraTech Cement’s move to acquire Kesoram Industries’ cement business highlights its commitment to expanding its market presence and enhancing its operational capacities in key regional markets.