UltraTech Cement to acquire putty maker Wonder WallCare for ₹235 crore, shares down

The stock is trading 0.86% lower at ₹11,506.4 apiece on the National Stock Exchange (NSE) at 10:06 am. The market capitalisation stands at ₹3,39,067.62 crore.

In an exchange filing, the Aditya Birla Group company said its Board of Directors gave the green light to the acquisition of 6,42,40,000 equity shares of Wonder WallCare Pvt Ltd for an enterprise value not exceeding ₹235 crore.

Upon completion of the acquisition, Wonder WallCare, a manufacturer of wall putty and related products, will become a wholly owned subsidiary of UltraTech Cement.

The acquisition will help the company in future expansion plans for the white cement and putty business.

Incorporated in December 2019, Wonder WallCare reported a turnover of ₹78.61 crore in the financial year 2023-24 (FY24) and ₹20.36 crore in FY23.

The deal is expected to be concluded in the next three months, subject to regulatory approvals and compliance.

This acquisition will give UltraTech Cement access to new state-of-the-art 600,000 metric tons per annum wall putty manufacturing facility at Rajasthan's Nathdwara.

"The plant is situated at the pithead of large high-quality raw material reserves and in close proximity to the company’s existing putty manufacturing facilities in Rajasthan. Constructed in 2022-23, this plant is one of the largest single-location putty manufacturing sites in India, with a capability to ramp up its capacities in the future," the cement maker said.

The company had reported a 17.3% decline in its consolidated post-tax profit to ₹1,469.5 crore in the third quarter of the financial year 2024-25, compared to ₹1,777 crore in Q3 FY24.

Consolidated revenue from operations rose 2.7% to ₹17,193.33 crore in the latest December quarter as against ₹16,739.97 crore.