India Cements Shares Surge 11% on CCI Nod for UltraTech Deal

India Cements shares surged by 11% during Monday's trading session (December 23, 2024), reaching an intraday high of ₹376.3 per share on the BSE. This spike followed the Competition Commission of India's (CCI) approval of UltraTech Cement's acquisition plans.

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By 9:22 AM IST, India Cements share price were trading at ₹370.15, up 9.19%, while the BSE Sensex recorded a 0.72% increase to 78,600.18. The market capitalization of India Cements stood at ₹11,472.39 crore. The stock's 52-week range is ₹172.55 to ₹385.5 per share. In contrast, UltraTech Cement shares saw a slight rise of 0.17% to ₹11,444.25.

According to an exchange filing, CCI approved UltraTech's acquisition of 10,13,91,231 equity shares, representing 32.72% of India Cements' equity share capital, held by promoters, promoter group members, and another shareholder. Additionally, the CCI sanctioned an open offer to purchase up to 8,05,73,273 equity shares (26% of the equity share capital) at ₹390 per share from public shareholders.

UltraTech Cement had initially announced this acquisition on July 28, involving a ₹3,954-crore deal to purchase a 32.72% stake in India Cements from promoters and associates, aiming to strengthen its presence in the competitive southern cement market. The company also disclosed plans for a ₹3,142.35-crore open offer to acquire a 26% public stake.

ICICI Securities, in a report dated December 2, upgraded UltraTech Cement from "Hold" to "Buy" with a target price of ₹13,033 per share. The report noted that despite the acquisitions of Kesoram and India Cements, UltraTech’s net debt is expected to remain below ₹20,000 crore.

India Cements, established in 1946 and headquartered in Chennai, Tamil Nadu, is a prominent cement manufacturer with a strong presence in southern and western India. It is recognized for quality and innovation, contributing significantly to infrastructure and industrial growth.

UltraTech Cement, part of the Aditya Birla Group and established in 1983, is India’s largest cement manufacturer and a global leader in the industry. Headquartered in Mumbai, Maharashtra, the company is known for its extensive product range, advanced technology, and sustainability initiatives.

Over the past year, India Cements shares have gained 34.6%, outperforming the Sensex's 9.3% rise.