UltraTech to Sell 7% Stake in India Cements
UltraTech Cement, the new promoter of India Cements, must sell about 7% of its stake. This stake is worth over Rs 667 crore. The sale is necessary to meet the minimum public shareholding rules set by the capital market regulator.
Why UltraTech Needs to Sell
UltraTech currently owns about 82% of India Cements. The rules require that listed companies must have at least 25% of their shares owned by the public.
The Reason Behind the Sale
UltraTech’s stake went over 75% after an open offer. This offer was triggered when its holdings in India Cements crossed a specific threshold. The open offer for an extra 26% stake to India Cements’ public shareholders was oversubscribed, which is rare in such offers.
Deadline and Options for Compliance
India Cements has until February 3, 2026, to ensure enough shares are held by the public. It can achieve this through several methods:
- Secondary share sale
- Preferential allotment
- Rights issue
- Bonus issue
If it chooses rights or bonus issues, UltraTech will need to give up its rights to buy those shares. Currently, India Cements shares are trading at Rs 333 each, making the 7% stake worth Rs 667 crore.
Official Statements
An UltraTech spokesperson stated that according to Sebi regulations, at least 25% of India Cements’ equity must be held by the public within 12 months after the open offer ends. The open offer ended on February 4 of this year. “UltraTech will ensure compliance within the stipulated timeline.”
Recent Market Trends
Data from Prime Infobase showed that in FY25, more than a dozen companies saw promoter holdings drop from over 75% to 75% or less. These companies include:
- Sanghi Industries under Adani Group
- Aditya Birla Sun Life AMC
- Bikaji Foods International
- Cello World
Details of the Acquisition
UltraTech, part of the Aditya Birla conglomerate, took control of the loss-making India Cements in December 2024. It paid Rs 9,060 crore for the acquisition, which expanded UltraTech’s reach in the growing southern market.
Future Prospects for India Cements
During its earnings call in April, UltraTech CFO Atul Daga shared that India Cements reached Ebitda breakeven in the first quarter after its takeover. It also sold over one million metric tons of cement in March, which he called a “second case of sweet success.”
Starting in April, with prices rising in the southern market, he believes this will lead to even better results for the company. In FY26, India Cements aims to surpass Rs 500 in Ebitda per metric ton. By FY27, it expects to cross Rs 800, and then hit a four-digit figure.
