UltraTech acquires 8.7% stake in Star Cement for ₹851 crore; shares surge 7%

UltraTech Cement has acquired an 8.7% stake in Star Cement for ₹851 crore, the company announced in a regulatory filing on Friday. Following the announcement, shares of Star Cement surged over 7% to ₹247.30 in early trade.

The transaction involves the purchase of up to 3.70 crore equity shares of Star Cement at a price not exceeding ₹235 per share, excluding Securities Transaction Tax (STT), stamp duty, and other levies. The investment was approved at a meeting of UltraTech Cement’s Board of Directors held earlier today, the company said.

The acquisition represents a non-controlling minority stake in Star Cement, whose promoter and promoter group entities had approached UltraTech Cement for the equity sale.

"Some promoter and promoter group entities of Star Cement Limited, a company incorporated under the Companies Act, 1956, having its registered office at Village Lumshnong, Dist.: East Jaintia Hills, Khaliehriat, Meghalaya – 793210 (“Star Cement”), propose to sell their equity holding in Star Cement and have approached the Company for the same," the company said.

Star Cement, headquartered in Meghalaya’s East Jaintia Hills district, is a leading cement manufacturer in the northeastern region of India.

Earlier this week, UltraTech Cement Ltd completed the acquisition of a majority stake in The India Cements Ltd.

The Aditya Birla Group firm acquired 32.72% of India Cements' equity share capital, amounting to 10.13 crore shares, on December 24, 2024, according to a regulatory filing by the company. With this, UltraTech’s total stake in India Cements has risen to 55.49%, giving it sole control over the company and the status of promoter.

In his resignation letter addressed to the Board, Srinivasan said, "Consequent to the divestment of my entire shareholding in The India Cements Ltd, I hereby tender my resignation as Vice Chairman & Managing Director, Director and Chief Executive Officer (KMP) with immediate effect. I also cease to be the Promoter of the company with immediate effect."