India Cements shares rise 7% high as UltraTech opens Offer for Sale process

The OFS, approved by UltraTech’s board on August 20, involves the sale of up to 2.01 crore equity shares, representing 6.49% of India Cements’ paid-up capital. The floor price has been fixed at ₹368 per share. At this price, the stake sale could be valued at more than ₹740 crore. The issue will remain open for bidding on August 21 and August 22.

In an exchange filing released in the post market hours of August 20, UltraTech Cement said, "We wish to inform you that the Committee of Directors and Officers of UltraTech Cement Limited ('MPS Committee'), at its meeting held today i.e. 20th August, 2025, has approved the sale of up to 2,01,12,330 equity shares of The India Cements Limited ('ICEM'), representing 6.49% of the issued and paid-up equity share capital of ICEM, by way of an offer for sale through the stock exchange mechanism, in accordance with applicable laws and the circulars issued by the Securities and Exchange Board of India and the stock exchanges."

Following the transaction, UltraTech’s holding in India Cements will reduce from 81.49% at the end of the June quarter of FY26 to 75%.

India Cements recently reported a positive Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of ₹83 crore in the June quarter, after a series of loss-making quarters. Ahead of Thursday’s session, the stock had already gained 8%.

UltraTech had acquired a 32.72% stake in India Cements in July 2024 through a ₹3,954 crore deal with promoters and their associates, followed by a ₹3,142.35 crore open offer to acquire an additional 26% from public shareholders. The Competition Commission of India cleared the acquisition in December, enabling UltraTech to emerge as the majority stakeholder in India Cements.

At 1:28 PM, shares of India Cements were trading 6.85% higher at ₹395.60 apiece on the NSE.