Big deal in cement company just before market opens, shares worth ₹851 crore bought in one go

Another big news is coming about the cement sector. Aditya Birla Group’s cement company UltraTech Cement has bought a stake in Star Cement. This stake was bought through a block deal just before the market opened on Friday. UltraTech Cement has also given information about this in the exchange filing. The company has also merged the cement business of group companies Kesoram and Century Textile. UltraTech Cement has set a target of achieving 200 MTPA capacity by the financial year 2026-27.

On Thursday, UltraTech Cement closed at ₹ 11,460 per share. Star Cement closed at ₹ 230 per share. On Friday, Star Cement’s stock opened at ₹ 240 per share with a gain of 4%. UltraTech Cement opened at ₹ 11,491 per share.

Bought shares worth ₹851 crore –

According to the information received, UltraTech Cement has bought this stake from the promoters of Star Cement. The company said that the promoter has sold a minority stake of up to 3.7% non-controlling. The company has bought a total of 8.7% stake through a block deal. This deal has been done at a price of ₹ 235 per share. The size of this deal is said to be ₹ 851 crore.

Star Cement, a cement company started in the year 2001, had a turnover of ₹ 2,910.66 crore in the last financial year. Earlier, i.e. in the financial year 2023, Star Cement’s turnover was ₹ 2,704.84 crore and in the financial year 2022 it was ₹ 2,221.81 crore.

Battle for number-1 in cement sector

Recently UltraTech Cement completed the acquisition in India Cement. Under this deal, UltraTech Cement acquired 10.13 crore equity shares or 32.72% stake in India Cements. This stake was acquired from the promoter, promoter group and other shareholders. Adani Group is also focusing on increasing its presence in the cement industry. Adani Group is focusing on increasing capacity with new acquisitions. In such a situation, this company is also going to face tough competition from Adani Group.