UltraTech Cement acquires 23% of India Cements for ₹1,885 crore.

Market Position Improved by Strategic Acquisition

The board of UltraTech Cement, India’s largest cement business, approved a ₹1,885 crore acquisition of a 23% holding in India Cements. UltraTech expects this smart move would boost its Indian cement market share.

Acquisition Info

The agreement involves purchasing 7.06 crore India Cements shares at an average price of ₹267 apiece. After a lively pre-market block session, India Cements’ purchase was finalized with 6. crore shares, representing 19.4% of equity, trading at an average price of ₹265 per share.

After acquiring Kesoram’s cement business for ₹7,600 crore, UltraTech Cement is growing with a 152.7 MTPA capacity. The new India Cements stake boosts its industry supremacy.

Market Responses

India Cements shares increased 8.67% to ₹285.4 on Thursday, following a 14% surge the day before. A stock’s performance led to a F&O ban, prohibiting fresh investments. Meanwhile, UltraTech Cement’s share price jumped 5% to ₹11,700 on the National Stock Exchange.

Financial indicators and stakeholders

South Indian cement major India Cements has 15.5 MTPA capacity. Promoters owned 28.42% of the business in March. Public stockholders like Radhakishan Damani and his colleagues possess over 25% of the shares. Mutual funds and ELM Park Fund hold 4.67% and 5.58%.

India Cements’ 2025 Enterprise Value to EBITDA multiple is 17x and FY26 is 13.69x. UltraTech’s 20.8x FY25 and 17.15x FY26 multiples show its market worth.

Industry Impact

Recently, Adani Cements acquired Penna Cements, a southern-based enterprise, for around ₹10,422 crore. Due to rivalry among major cement producers, consolidation is expected.

“We expect cement consolidation to continue with industry leaders having strong balance sheets,” said Prabhudas Lilladher research analyst Tushar Chaudhari. Market share competitors should compete harder.”

Future prospects

UltraTech Cement’s investments, including ₹32,400 crore for production capacity expansion over three years, show its aggressive development ambition. The company will increase gray cement capacity to 198.2 MTPA to dominate the market.

UltraTech should gain market share and operational synergies from India Cements’ investment. Changes in the Indian cement industry’s competitive structure will benefit stakeholders and drive growth.

Conclusion

UltraTech Cement bought a 23% stake in India Cements for ₹1,885 crore, signaling greater consolidation in the cement industry. This sensible move will boost UltraTech’s market position as industry leaders strengthen their portfolios. “We believe consolidation is expected to continue in the cement space, with industry leaders having strong balance sheets,” predicted Tushar Chaudhari.