The board of directors of UltraTech Cement has approved the proposal to acquire 8.69% in Star Cement for Rs 851 crore.
“The Board of Directors of the Company at its meeting held today considered the proposal and approved making an investment to acquire non-controlling minority stake upto 3.70 crores equity shares of Star Cement at a price not exceeding Rs. 235/- per share, excluding STT; stamp duty and other levies,” the company said in a regulatory filing.
Star Cement Limited has a turnover of Rs2,910.66cr as on as on 31st March, 2024 and was incorporated in 2001.
The filing said that some promoter and promoter group entities of Star Cement Limited propose to sell their equity holding in Star Cement and have approached the Company for the same.
Earlier this month, the company had refuted rumours of it being in talks with Adani group.
“We hereby clarify that the above-mentioned news item is speculative and the Company is not engaged in any discussions in this regard.”
The indicative time period for completion of acquisition is one month in an all-cash deal.
There has been a slew of acquisitions from both UltraTech and Adani group in the cement space. According to Crisil, demand in the sector grew at a CAGR of 11% between fiscal 2022 and 2024.
