Shares of UltraTech Cement Ltd shot up 6% and hit a 52-week high of Rs 11,874.95 on 27 June after the company’s Board of Directors authorised the purchase of a 23% stake in India Cements, of which the company has already acquired a 19.44% stake in the morning block deals. 

The board of the company has also approved buying an additional 3.4% equity in the India Cements to complete the target acquisition. 

The company had acquired 6.02 crore shares in India cements at an average price of Rs 267 per shares, while Aditya Birla group company will acquire the remaining 1.04 crore shares for an average price of Rs 285 per share. 

The total cost of acquiring a stake in India Cements stood at around Rs 1,900 crore.  

Shares of India Cements Ltd hit a 52-week high of Rs 298.80 and was training 13% higher. 

Among the shares in India Cements, the promoter group holds 28.42%, while well-known investor Radhakishan Damani and associates own 20.78%.

The projected time to complete the acquisition is one month, and the transactions are being done for cash.

The cement industry has grown structurally, above its historical average of 5-6%, with a strong volume compound annual growth rate (CAGR) of 9–10% from FY21 to FY24. 

At 2:12 pm, the shares of UltraTech Cements were trading 2.70% higher at Rs 11,445 on NSE.