UltraTech Cement Stake Sale in India Cements

UltraTech Cement on August 20 announced that its board has approved the sale of up to 2.01 crore shares of India Cements, representing 6.49% stake, through an Offer for Sale (OFS). The floor price for the stake sale has been set at ₹368 per share, and the offer will remain open from August 21 to August 22.

The company informed in its exchange filing that the sale will be conducted in accordance with SEBI guidelines through the stock exchange mechanism.

Market Impact and Stake Position

At the end of the June quarter (Q1 FY26), UltraTech Cement held 81.49% stake in India Cements. Following this stake sale, its holding will reduce to 75%, aligning with regulatory requirements.

On August 20, shares of India Cements closed nearly 1% lower at ₹370 apiece. At this price, the stake sale of 2.01 crore shares is valued at ₹744 crore.

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Strategic Background

UltraTech had earlier acquired a 32.72% stake in India Cements from promoters in July 2024 for ₹3,954 crore, followed by an open offer of ₹3,142 crore to acquire an additional 26%. The Competition Commission of India cleared the acquisition in December 2024, making UltraTech the majority shareholder of the southern cement player.

Meanwhile, UltraTech is on track to achieve its 200 MTPA capacity target by FY26, a year ahead of schedule, as confirmed by Chairman Kumar Mangalam Birla at the AGM on August 19.

Key Insights

• UltraTech selling 6.49% stake in India Cements via OFS.

• Floor price set at ₹368 per share.

• Post-sale holding to reduce from 81.49% to 75%.

• Estimated deal value ₹744 crore.

• UltraTech fast-tracking 200 MTPA capacity expansion.

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