March 20 saw UltraTech Cement’s shares open at Rs 9,535, registering a notable increase of over one percent in early trading. This surge comes on the heels of the Competition Commission of India (CCI) granting approval for UltraTech Cement’s proposed acquisition of Kesoram Cement’s business segment from Kesoram Industries. The acquisition, which specifically targets Kesoram’s grey cement division, is part of a comprehensive scheme of arrangement dated November 30, 2023, as disclosed in the company’s regulatory filings. UltraTech Cement’s strategic move underscores its commitment to expansion and market consolidation in the cement sector, positioning itself for enhanced growth and market presence.
As of recent data, UltraTech Cement’s stock has experienced a downturn of 10% since the beginning of the year. This decline comes in the wake of the company’s disclosed intentions last November to pursue the acquisition of Kesoram Industries’ cement business, a flagship enterprise of the BK Birla Group. The proposed deal, structured as an all-share transaction, also encompassed the absorption of associated debt, amounting to an estimated value of around Rs 7,600 crore.
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UltraTech Cement, a prominent player in India’s construction materials sector, announced a remarkable 67% surge in net profit to Rs 1,774 crore during the December quarter, exceeding market expectations. The company, known for its diverse product portfolio including grey cement, white cement, ready-mix concrete, clinker, and building products, attributed this impressive growth to robust demand for construction materials coupled with reduced operating costs. Analysts had forecasted a net profit of Rs 1,714.19 crore for the October-December period, making UltraTech Cement’s performance a notable outperformance in the industry.
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