UltraTech Cement acquires 8.7% stake in Star Cement for Rs 851 crore

The transaction includes the purchase of up to 3.7 crore equity shares at a price not exceeding Rs 235 per share, excluding taxes and other charges.

The deal comes after the promoters and related entities of Star Cement offered to sell their stakes, prompting UltraTech’s investment.

The transaction was approved by UltraTech's board during its meeting on December 27, marking a strategic investment in a non-controlling minority share of Star Cement.

Additionally, a block deal saw 3.36 crore shares, or 8.3 percent of Star Cement, worth Rs 766 crore, exchanged.

Following this, Star Cement’s shares rose over 7 percent to Rs 247.30 by 9:20 am.

Earlier this month, on December 20, the Competition Commission of India approved UltraTech Cement's acquisition of India Cements Limited (ICL).

In July, UltraTech Cement had announced the purchase of a 32.72 percent stake in ICL from promoters and their affiliates in a Rs 3,954 crore deal, aimed at expanding its presence in the competitive southern cement market, particularly Tamil Nadu.

The company also launched a Rs 3,142.35 crore open offer to acquire an additional 26 percent from ICL’s shareholders.

The Indian cement industry, amid consolidation and intensifying competition, is optimistic about growth in 2025, expecting 8 percent sales growth driven by increased government spending on infrastructure projects.

After a slow October, cement volumes began recovering in November.

International brokerage CLSA remains bullish on demand prospects for FY25 and FY26, with UltraTech Cement among its preferred players.