India's UltraTech Cement buys stake in India Cements for $226 mln (updated)

India Cements

27/06/2024 05:08

(Updates with share levels, context throughout)
       BENGALURU, June 27 (Reuters) - UltraTech Cement
 ULTC.NS , India's top cement producer by capacity, said on
Thursday it will buy a 23% stake in India Cements  ICMN.NS  for
up to 18.85 billion rupees (about $226 million).
    UltraTech said it would buy 70.6 million India Cements
shares for up to 267 rupees each, a 1.7% premium to the stock's
closing price on Wednesday.
    India Cements's shares jumped 10% to nearly 289 rupees in
initial trade, while UltraTech's shares rose 5.2%.
    UltraTech's stake in Chennai-based India Cements comes as it
jostles for market share with the Adani group's Ambuja  ABUJ.NS 
and ACC  ACC.NS  cement companies.
    Earlier this month, Ambuja bought Penna Cement Industries in
a $1.25 billion deal.
    Last year, UltraTech had bought Kesoram Industries' cement
business for $645 million.
 
 ($1 = 83.5050 Indian rupees)

 (Reporting by Hritam Mukherjee in Bengaluru; Editing by Savio
D'Souza)
 ((Hritam.Mukherjee@thomsonreuters.com; X: @MukherjeeHritam;))