UltraTech unit buys 29.39% stake in UAE's RAKWCT for $101 million

UltraTech Cement Ltd today announced that Cement Middle East Investments Ltd (UCMEIL), its wholly-owned subsidiary in UAE, has invested in 29.39% equity share capital of RAK Cement Co for White Cement and Construction Materials PSC, a company listed on the Abu Dhabi and Kuwait stock exchanges. The current stake buy amounts to a $101.10 million investment in RAKWCT.

RAKWCT is situated in Ras Al Khaimah. After this investment, together with the existing shareholding, UCMEIL's stake in RAKWCT will rise to 29.79%. UAE-based RAKWCT has posted revenue worth Rs 482.5 crore in CY21, Rs 446.4 crore in CY20, and Rs 453.3 crore in CY19.

UltraTech Cement is the cement flagship company of the Aditya Birla Group. The $5.9 billion company is a major manufacturer of grey cement and ready mix concrete. With a consolidated capacity of 119.95 million tonnes per annum (MTPA) of grey cement, UltraTech has 22 integrated manufacturing units, 27 grinding units, one clinkerisation unit and 8 bulk packaging terminals.

In another news, Aditya Birla-led company participated in the e-auction of Diggaon Limestone Block conducted by the government of Karnataka and has been declared as the preferred bidder. The block is situated in Chittapur of Kalburgi district, adjacent to its Rajashree Unit. It has total cement grade geological resources of 530 million tonnes of limestone over an area of 7.86 sq km, the company said.

The UltraTech Cement share closed 0.72% or Rs 48.65 down at Rs 6,726.95 on the National Stock Exchange on Thursday.