UltraTech Buys 8.69% Stake in Star Cement for Rs 8.51 Bn
30 Dec 2024
2 Min Read
CW Team
UltraTech Cement Ltd has acquired an 8.69 per cent stake in Star Cement Ltd from its promoter group for Rs 8.51 billion. The transaction, conducted via the block deal window, saw shares purchased at Rs 235 per share, as per an exchange filing on December 27. UltraTech clarified that the acquisition is a non-controlling minority stake in Star Cement.
Star Cement, headquartered in Meghalaya, reported a turnover of Rs 29.1 billion for the financial year 2024. The company holds a dominant 26.5 per cent market share in the northeastern cement market, supported by a grinding capacity of 7.7 million tonne per annum (MTPA) and clinker capacity of 6.1 MTPA. Its distribution network includes approximately 2,000 dealers and over 12,500 retailers. Premium sales account for 10.6 per cent of the company鈥檚 overall sales.
In addition to this stake acquisition, UltraTech recently acquired a controlling 32.72 per cent stake in India Cements, triggering an open offer priced at Rs 390 per share. The deal made India Cements a subsidiary of UltraTech, adding 14.5 million tonne (mn t) to UltraTech鈥檚 production capacity.
Star Cement has also been expanding its resource base and operations. In the September quarter, the company emerged as the preferred bidder for six limestone blocks in Rajasthan鈥檚 Beawar district, with estimated geological reserves of 63.9 mn t spread across 95.68 hectare. Additionally, the company is setting up new units in Silchar and Jorhat districts of Assam, with a planned capital expenditure of Rs 3.80 billion for the second half of the financial year.
The strategic acquisition by UltraTech further consolidates its position in the Indian cement market while providing exposure to Star Cement鈥檚 strong presence in the north-eastern region.
UltraTech Cement Ltd has acquired an 8.69 per cent stake in Star Cement Ltd from its promoter group for Rs 8.51 billion. The transaction, conducted via the block deal window, saw shares purchased at Rs 235 per share, as per an exchange filing on December 27. UltraTech clarified that the acquisition is a non-controlling minority stake in Star Cement.
Star Cement, headquartered in Meghalaya, reported a turnover of Rs 29.1 billion for the financial year 2024. The company holds a dominant 26.5 per cent market share in the northeastern cement market, supported by a grinding capacity of 7.7 million tonne per annum (MTPA) and clinker capacity of 6.1 MTPA. Its distribution network includes approximately 2,000 dealers and over 12,500 retailers. Premium sales account for 10.6 per cent of the company鈥檚 overall sales.
In addition to this stake acquisition, UltraTech recently acquired a controlling 32.72 per cent stake in India Cements, triggering an open offer priced at Rs 390 per share. The deal made India Cements a subsidiary of UltraTech, adding 14.5 million tonne (mn t) to UltraTech鈥檚 production capacity.
Star Cement has also been expanding its resource base and operations. In the September quarter, the company emerged as the preferred bidder for six limestone blocks in Rajasthan鈥檚 Beawar district, with estimated geological reserves of 63.9 mn t spread across 95.68 hectare. Additionally, the company is setting up new units in Silchar and Jorhat districts of Assam, with a planned capital expenditure of Rs 3.80 billion for the second half of the financial year.
The strategic acquisition by UltraTech further consolidates its position in the Indian cement market while providing exposure to Star Cement鈥檚 strong presence in the north-eastern region.
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