Societe Generale Divests 0.67% Stake in India Cements for Rs 78 Crore

On Monday, Societe Generale sold a 0.67 per cent stake in India Cements for Rs 78 crore through an open market transaction. The bulk deal data from the National Stock Exchange (NSE) shows that the Paris-based financial services company offloaded 20.61 lakh shares of India Cements.

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The shares were sold at an average price of Rs 378.15 each, bringing the total deal value to Rs 77.95 crore. At the end of the June quarter, Societe Generale held a 1.62 per cent stake in India Cements, according to BSE shareholding data.

UltraTech Cement's Strategic Moves

On Sunday, UltraTech Cement, part of the Aditya Birla Group, announced its acquisition of a 32.72 per cent stake in India Cements from promoters and their associates for Rs 3,954 crore. This move aims to strengthen its presence in the competitive Southern cement market, especially in Tamil Nadu.

Following this acquisition, UltraTech's shareholding in India Cements will rise to 55.49 per cent. UltraTech has also launched an open offer to acquire an additional 8.05 crore shares of India Cements, representing 26 per cent of the company's shareholding.

The open offer is priced at Rs 390 per share, totalling up to Rs 3,142.35 crore. Despite these acquisitions, UltraTech has stated that India Cement Ltd (ICL) will remain a listed entity.

Previous Acquisitions and Capacity

In June, UltraTech acquired a 23 per cent stake in ICL by purchasing shares from the Damani group through two block deals worth around Rs 1,900 crore. ICL has a total group capacity of 14.45 Million Tonnes Per Annum (MTPA) of grey cement.

Of this capacity, 12.95 MTPA is located in the southern region and 1.5 MTPA is in Rajasthan. UltraTech itself boasts a consolidated capacity of 152.7 MTPA of grey cement.

The company operates 24 integrated manufacturing units, 33 grinding units, one clinkerisation unit, and eight bulk packaging terminals.

Details on Share Purchase Agreement

UltraTech has entered into a share purchase agreement for a 28.42 per cent stake from promoters including Srinivasan N., Chitra Srinivasan, Rupa Gurunath, and S.K. Asokh Baalaje, as well as a 4.30 per cent stake from Sri Saradha Logistics.

Shares of India Cements saw a slight increase of 0.07 per cent to close at Rs 374.30 each on the NSE following these developments.

The buyers of Societe Generale's shares in India Cements have not been identified yet.

This series of transactions highlights UltraTech's strategic efforts to expand its footprint and consolidate its position in the Indian cement industry.