In a strategic move to strengthen its market leadership, Kumar Mangalam Birla-led UltraTech Cement has announced its decision to acquire approximately 8.69% stake in Star Cement for a maximum investment of Rs 851 crore. The company’s Board of Directors approved the acquisition recently, as disclosed in a regulatory filing.
Under the agreement, UltraTech will purchase up to 3.70 crore equity shares of Star Cement at a price of Rs 235 per share, excluding applicable taxes, stamp duty, and additional charges. This move aligns with UltraTech’s strategic expansion plans to consolidate its position in the cement industry.
“The board of directors of the company at its meeting held today considered the proposal and approved making an investment to acquire non-controlling minority stake up to 3.70 crores equity shares of Star Cement at a price not exceeding Rs 235/- per share, excluding STT, stamp duty and other levies,” the company stated.
The Indian cement industry is witnessing consolidation and heightened rivalry between two corporate houses: Kumar Mangalam Birla-led Aditya Birla Group and Gautam Adani-led Adani Group. The Adani group plans to raise its production capacity to 140 MTPA by FY28, while Aditya Birla Group aims to maintain its lead with 200 MTPA capacity by FY27.
