India Cements Promoter N Srinivasan Steps Down As UltraTech Completes Acquisition

Leading cement maker UltraTech has completed the acquisition of promoters a 32.72% stake in India Cements Ltd, following which N Srinivasan and other promoters of the South-based cement maker have stepped down.

The Aditya Birla Group firm has completed the acquisition of 10.13 crore equity shares of India Cements Ltd, representing 32.72% of the equity share capital of the company.

"This, together with the existing shareholding of 7.05 crore equity shares (22.77 per cent) of the equity share capital of ICL, has resulted in the Company’s shareholding increasing to 17.19 crore equity shares representing 55.49 per cent of ICL's equity share capital," UltraTech had informed in a late-night regulatory filing on Tuesday.

Consequently, ICL 'has become a subsidiary of the Company' with effect from December 24, 2024, it added.

On Wednesday, ICL informed that pursuant to the completion of the transaction and due to the consequent cessation of control by the existing promoters over the company, N Srinivasan has stepped down as Vice Chairman and Managing Director.

Besides, his daughter Rupa Gurunath,  wife Chitra Srinivasan and V M Mohan have also stepped down from the board of the company, according to a regulatory filing by ICL.

Moreover, 'pursuant to the consummation of the Transaction on December 24 2024, UltraTech has acquired sole control of the company and has become the promoter of the company in accordance with the LODR Regulations', informed ICL.

Further, the board also recorded the resignation of certain independent directors -  S Balasubramanian Adityan, Krishna Srivastava, Lakshmi Aparna Sreekumar and Sandhya Rajan with effect from the end of business hours on December 25, 2024, it added.

The board has also appointed four new directors - K C Jhanwar, Vivek Agrawal, E R Raj Narayanan and Ashok Ramachandran. Besides, three independent directors - Alka Bharucha, Vikas Balia and Sukanya Kripalu - have come on board of ICL.

Last week, the Competition Commission of India cleared over Rs 7,000-crore deal, wherein billionaire Kumar Mangalam Birla promoted UltraTech Cement had proposed to acquire a majority stake in India Cements Ltd.

The fair trade regulator also granted its clearance to UltraTech Cement to acquire up to 26% of the paid-up equity share capital of India Cements by way of an open offer, it added.

On July 28, UltraTech Cement announced the acquisition of a 32.72% stake in India Cements Ltd from promoters and their associates in a Rs 3,954-crore deal, which will expand its footprint in the highly competitive and fast-growing southern cement market.

Besides, Ultratech has also announced a Rs 3,142.35 crore open offer to acquire 26 per cent share of ICL from its shareholders.

Earlier, in June UltraTech acquired 23% shares of ICL.

It had acquired Damani-group’s stake in India Cements Ltd through two block deals in a deal which is estimated to be around Rs 1,900 crore.