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2 min read | Updated on May 28, 2024, 10:10 IST
SUMMARY
Ultratech Cement's stock edged in the green in the early trading hours. The shares were trading at ₹10,328 apiece on the NSE at 9:48 am, up 1.01% as against the last closing price.
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Ultratech Cement, one of the leading cement manufacturers, had posted a 36% YoY surge in Q4 net profit at ₹2,258 crore
Shares of Ultratech Cement, the cements flagship of Aditya Birla Group, edged higher after the company announced its plan to acquire nearly one-third of total stake in the UAE-based RAK Cement.
UltraTech Cement Middle East Investments Limited, an arm of the company, has "notified its intention of making a partial conditional cash offer for acquiring 158,049,610 shares, representing 31.6% of the issued and paid-up share capital of RAKWCT (RAK Cement)", a regulatory filing stated late on Monday.
Following the announcement, Ultratech Cement's shares edged in the green in the early trading hours. The scrip was valued at ₹10,328 apiece on the NSE at 9:48 am, up 1.01% as against the last closing price.
Notably, RAK Cement, incorporated in 1980, is based in Ras Al Khaiman of the United Arab Emirates. It is presently listed on the Abu Dhabi stock exchange. The company had reported an annual turnover of ₹576 crore in calendar year 2023, higher as compared to ₹537 crore in 2022 and ₹483 crore in 2021.
Ultratech informed the exchanges that it will complete the acquisition of 31.6% stake in RAK Cement within 90 days from the date of offer.
Through the acquisition, the company said, it intends to expand RAK Cement's business "locally, regionally and globally". While RAK Cement is a notable white cement manufacturer, Ultratech said it would add up new line of products including wall care putty.
Meanwhile, Ultratech had posted a net profit of ₹2,258 crore in the quarter ended March 2024, up 36% year-on-year. The company had also recommended a dividend of ₹70 per share at a rate of 700%.
Year-to-date, the India-headquartered cement manufacturer's stock has declined by 1.3%, but the shares have given 30% returns over the past one year.
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