UltraTech Cement Ltd. has bought a non-controlling minority 8.31% stake in Star Cement for Rs 765 crore. The company will be buying a stake of up to 3.36 crores in equity shares for Rs 227.7 apiece.
The acquisition marks UltraTech Cement's second acquisition of another listed company in 2024. The company previously acquired the entirety of India Cements via three different financial investments.
About The Acquisition
Star Cement promoters Rajendra Chamaria sold 4.83%, Rahul Chamaria offloaded 0.89%, and Sachin Chamaria sold 1.85% at Rs 227.7 apiece, according to NSE block deal data. Renu Chamaria also sold 30.03 lakh shares at Rs 227.7 per share. The promoters have exited the company with this sale of shares.
About Star Cement
Star Cements Ltd. is engaged in manufacturing and selling of cement clinker and cement. The company has a major market presence in the North- east region of India.
As of FY24, Star Cement had a total cement capacity of 7.67 million tonnes per annum and a total clinker capacity of 2.8 million tonnes per annum. The company plans to increase its clinker capacity to 6.1 million tonnes per annum by FY25 end.
The company's turnover for FY22, FY23 and FY24 stood at Rs 2,221.81 crore, Rs 2,704,84 crore and Rs 2,910.66 crore, respectively.
Star Cement: An Optimal Acquisition Candidate
Back in June 2024, Emkay Research stated that Star Cement Ltd. was one of the potential candidates for a complete acquisition in the listed space. Back then the stock traded at an enterprise value per tonne of $135. Today it stands at $103.
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