UltraTech Cement stock rises on CCI nod to acquire Kesoram Cement

Shares of UltraTech Cement opened over a percent higher to Rs 9,535 in early trade on March 20 after the Competition Commission of India (CCI) approved the company’s proposed acquisition of Kesoram Cement business from Kesoram Industries.

“The proposed combination relates to the acquisition of the grey cement business of Kesoram Industries Limited by UltraTech Cement Ltd under a composite scheme of arrangement dated November 30, 2023,” the company said in a regulatory filing.

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The scrip has declined 10 percent since the start of the year.

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In November last year, UltraTech Cement disclosed its plans to acquire the cement business of the BK Birla Group’s flagship company, Kesoram Industries, through an all-share deal. The transaction, which included debt, was valued at approximately Rs 7,600 crore.

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The company is a publicly listed company engaged in the manufacturing and sale of various construction materials in India. Its product portfolio includes grey cement, white cement, ready-mix concrete, clinker, and building products.

In the December quarter, it recorded a 67 percent increase in net profit to Rs 1,774 crore, surpassing expectations. This surge was attributed to strong demand for building materials and reduced operating costs. Analysts had anticipated a net profit of Rs 1,714.19 crore for the October-December quarter.

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