UltraTech likely to acquire Binani Cement; Binani Industries surges by 5 per cent

As the news regarding the likely acquisition of Binani Cement by UltraTech Cement became rife, the share price of Binani Cement’s parent company Binani Industries shot up by 5 per cent and got locked at upper circuit during Friday’s trade.

According to reports, UltraTech Cement, an Aditya Birla Group Company, has requested for approval from the Competition Commission of India (CCI) for acquiring Binani Cement, a subsidiary company of Binani Industries. The company has offered Rs. 62 billion and a 20 per cent stake in the company to unsecured financial creditors in order to acquire Binani Cement.

UltraTech Cement is among top bidders including Dalmia Bharat, JSW Cement, Heidelberg Cement and Ramco Cements for Binani Cement which was sent to the National Company Law Tribunal in July 2017, post a petition by the Bank of Baroda. The company that defaulted on its debt of Rs. 39.76 billion as of March 2017 is valued at Rs. 173 billion according to Binani Industries.

While Binani Industries got locked at upper circuit at Rs. 109.20 per share, higher by 5 per cent, UltraTech Cement mostly remained in the negative territory during Friday’s trade session. At 1201 hours IST, UltraTech Cement was trading at Rs. 4,105 per share, higher by 0.03 per cent on BSE.