In a landmark development for the cement business in India, the Competition Commission of India or CCI, approved the much-talked-about acquisition of India Cements by Ultratech Cement.
CCI Approves Acquistion
Investors appear to have welcomed the decision, as the shares of both companies are trading in green with major gains on the intraday trade on Monday, December 23.
The Aditya Birla group-owned Ultratech Cement is the largest cement maker in the country.
Meanwhile, the N Srinivasan founded India Cements is a major name in southern India.
In the early hours of the day’s trade, India Cements shares rose by over 7 per cent, meanwhile, Ultratech rose by just under 1 per cent.
This deal once taken to fruition is expected to increase Ultratech influence in the larger market, as to would get a foothold in southern India, through the Chennai-based India Cements.
The deal was started earlier this year in July, when reports emerged stating that the Ultratech board of directors gave the go-ahead to the acquisition of a 32.71 per cent stake in promoters, including the likes of N. Srininvasn.
India Cements has a total capacity of 14.45 million tonnes per annum (mtpa) of grey cement.
When we take a closer look at the stock of the cement companies, India Cements was the bigger gainer at Dalal Street by a huge margin.
India Cements Ltd
At the time of writing, the company shares only improved their standing compared to the beginning of the day. It rose by a massive 8.99 per cent or Rs 30.50.
This took the overall value of India Cements shares to Rs 369.65 per piece.
UltraTech Cement Ltd
Coming to Aditya Birla’s Ultratech, the company shares also surged. After opening at higher Rs 11,520.00, it grew further to Rs 11,582.45. However, a slump in the fortunes lead to a slight decline.
At the time of writing the shares increased in value by 0.77 per cent or Rs 87.40. This took the value of the shares to Rs 11,510.20 per piece.
