Ultratech Announces Acquisition of 23 per cent Stake in Radhakishan Damani Portfolio Company; Stock Rallies 10 per cent and Hits Upper Circuit Today
Radhakishan Damani holds an 11.34 per cent stake in the company as per the recent update.
Ultratech Cement, a leading player in the cement industry, announced that its Board of Directors has approved a financial investment plan to acquire up to 7.06 crore equity shares of India Cements Limited. The purchase will be made at a price of up to Rs 267 per share, constituting approximately 23 per cent of the equity share capital of ICL. This investment is classified as non-controlling and aims to enhance Ultratech Cement's strategic portfolio within the sector. As of now, the seller's name is not confirmed.
Incorporated in 1946 and headquartered in Chennai, The India Cements Limited is primarily engaged in the manufacturing and sale of cement products. Over the last three fiscal years, the company has demonstrated a robust financial performance with turnover figures of Rs 5,112 crore in FY24, Rs 5,608 crore in FY23, and Rs 4,858 crore in FY22.
This acquisition, categorized as a financial investment and it is noteworthy that this transaction does not constitute a related party transaction, and there are no interests from the promoter or promoter group companies in the entity being acquired. The acquisition process is expected to be completed within a span of one month, pending necessary approvals.
Today, shares of the Large-Cap Ultratech Cement are trading at around Rs 11,351.80 each, representing a gain of approximately 1.81 per cent, while shares of Small-Cap India Cement are trading at around Rs 289.20, rallying 10 per cent and hitting the upper circuit today and are among the Top Gainers today.
As per the Quarterly Results, in the fourth quarter of FY24, India Cements Ltd recorded a revenue of Rs 1267 crore. The operating profit for Q4 FY24 stood at Rs 38 crore. The net loss for Q4 FY24 was Rs 61 crore. Looking at the annual performance, the company generated a revenue of Rs 5112 crore in FY24, compared to Rs 5608 crore in FY23. The operating profit for FY24 was Rs 99 crore, with a net loss of Rs 227 crore.
Radhakishan Damani Holds 11.34 per cent Stake!
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Disclaimer: The article is for informational purposes only and not investment advice.
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