UltraTech, the leading cement manufacturer, has completed the acquisition of promoters a 32.72 per cent stake in India Cements Ltd, following which N Srinivasan and other promoters of the South-based cement maker have stepped down.
The Aditya Birla Group firm has completed the acquisition of 10.13 crore equity shares of India Cements Ltd (ICL), representing 32.72 per cent of the equity share capital of the company.
"This, along with the current holding of 7.05 crore equity shares (22.77 per cent) of the equity share capital of ICL, has led to the Company's holding to rise to 17.19 crore equity shares representing 55.49 per cent of ICL's equity share capital," UltraTech had said in a late-night regulatory filing on Tuesday.
As a result, the company stated that ICL has become a subsidiary of the Company effective 24th December, 2024.
ICL on Wednesday said with effect from December 24, 2024, in pursuance of completion of the transaction and consequent end of control by existing promoters over the company, N Srinivasan has relinquished the offices of Vice Chairman and Managing Director.
Besides, his daughter Rupa Gurunath, wife Chitra Srinivasan and V M Mohan have also quit the board of the company, according to a regulatory filing by ICL.
Moreover, "pursuant to the consummation of the Transaction on December 24 2024, UltraTech has acquired sole control of the company and has become the promoter of the company in accordance with the LODR Regulations", ICL was informed.
Further, the board also recorded the resignation of certain independent directors - S Balasubramanian Adityan, Krishna Srivastava, Lakshmi Aparna Sreekumar and Sandhya Rajan with effect from the end of business hours on December 25, 2024, it added.
The board has also inducted four new directors - K C Jhanwar, Vivek Agrawal, E R Raj Narayanan and Ashok Ramachandran. In addition, three independent directors - Alka Bharucha, Vikas Balia and Sukanya Kripalu - have joined the board of ICL.
Last week, the Competition Commission of India (CCI) cleared over Rs 7,000-crore deal, wherein billionaire Kumar Mangalam Birla promoted UltraTech Cement had proposed to acquire a majority stake in India Cements Ltd.
The fair trade regulator has allowed UltraTech Cement to buy as much as 26 per cent of India Cements' paid-up equity share capital with an open offer, it added.
On July 28, UltraTech Cement acquired a 32.72% stake in India Cements Ltd, known as ICL, from promoters and their associates through a Rs 3,954 crore deal that will expand the firm's footprints in the highly competitive and fast-growing southern cement market.
Apart from that, Ultratech has also declared an open offer for buying 26 per cent share of ICL from its shareholders at Rs 3,142.35 crore.
Earlier in June UltraTech had bought 23 per cent shares of ICL.
It had bought Damani-group's stake in India Cements Ltd (ICL) through two block deals in a deal that is estimated to be around Rs 1,900 crore.
Indian cement industry is witnessing consolidation with higher competition among two corporate houses -- Gautam Adani-led Adani Group and Kumar Mangalam Birla-led Aditya Birla Group -- snapping up the small ones.
The Adani group has plans in the pipeline to raise its production capacity to 140 MTPA by FY28, just a shade below market leader UltraTech's current capacity of 156.66 MTPA of grey cement.
Adani Cement recently announced the acquisition of CK Birla group firm Orient Cement, through which it will achieve a capacity of 100 MT (million Tones) per annum by the end of FY25 and a gain of 2 per cent in the overall market share in the country.
It has closed the acquisition of Saurashtra-based Sanghi Industries, and Penna Industries and recently announced acquisition of CK Birla group firm Orient Cement as part of its inorganic growth strategy.
Aditya Birla Group also aims to continue at a distance with 200 MTPA capacity in FY27.
UltraTech Cement also is in the process of acquiring the cement business of Kesoram Industries and waiting for regulatory clearance.
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