UltraTech Cement to acquire an 8.69% stake in Star Cement, a Meghalaya-headquartered cement manufacturing company, for ₹851 crore. The company informed the exchanges that the acquisition is expected to be completed in one month with a cash deal.

The company states that its board of directors approved the proposal to acquire 3.70 crores equity shares of Star Cement for ₹235 per share. “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 ₹235/- per share, excluding STT; stamp duty and other levies.”

The approval for the acquisition closely follows UltraTech Cement’s recent acquisition of 32.72% stake in India Cements.

Despite this announcement, shares of UltraTech Cement fell as much as 0.44%, hitting an intraday low of ₹11,406.00 on Friday.

As of October 2024, UltraTech had a capacity of 150.77 million tonnes per annum (MTPA) in India. The company intends to boost its capacity to surpass 200 MTPA by 2027. Whereas, Star Cement had a capacity of 7.7 MTPA. In this financial year, the cement industry expects an addition of 35-40 MTPA, with 60-65% focused on the eastern and southern regions. This expansion is expected to be driven by a rise in demand, which will expand the cement industry’s capacity utilisation to 72% in FY25.

UltraTech Cement reported a net profit of ₹825 crore net profit for the second quarter of 2024. Star Cement Ltd., incorporated on November 2, 2024, deals in manufacturing and sale of cement. Its turnover as on March 31, 2024 was ₹2,910.66 crore.