The country’s leading cement company UltraTech Cement Ltd has executed an important deal. The company has purchased 8.69% stake in Star Cement Ltd. This stake has been acquired from the promoter group for ₹851 crore. Under this deal, UltraTech paid ₹235 per share.
Details of stake acquisition in Star Cement
- UltraTech Cement said in the information given to the exchange on December 27 that this acquisition has been done in the form of non-controlling stake.
- Star Cement is primarily active in North East India and has a major business in Meghalaya.
- The total turnover of Star Cement in FY 2024 was ₹2910 crore.
stock market performance
- Shares of UltraTech Cement opened at ₹11,594.85 on Friday.
- On the other hand, shares of Star Cement saw a rise of about 8% on Friday. Its intra-day high was ₹247.75 per share on BSE.
UltraTech’s big deal in India Cement too
UltraTech Cement is continuously making acquisitions to strengthen its position.
- Recently the company purchased 32.72% stake in India Cements.
- Under this deal, UltraTech bought 10.13 crore shares and raised 26% through open offer.
- Through these acquisitions, UltraTech has further strengthened its hold in the cement industry.
financial position of the company
However, UltraTech Cement faced a decline in profits in its second quarter (July-September 2024):
- The company’s net profit fell 36% to ₹820 crore, from ₹1281 crore a year ago.
- The company’s revenue during this period stood at ₹956 crore.
Star Cement Performance
Star Cement has given excellent returns to investors over the years:
- In the last 1 year, its shares have increased by 33.23%.
- Investors holding shares of the company for the last 2 years have got a profit of 104% so far.
