UltraTech Cement, India’s leading cement manufacturer, announced on Thursday its plans to acquire a 23% stake in Chennai-based India Cements Ltd, in a significant move valued at approximately Rs 1,885 crore.

According to a regulatory filing by UltraTech Cement, the Aditya Birla Group flagship company will purchase 7.06 crore equity shares of India Cements at a price not exceeding Rs 267 per share. The decision was ratified during a board meeting held on Thursday, marking a strategic financial investment by UltraTech Cement into its rival company.

“The Board of UltraTech Cement has approved the acquisition to strengthen our market presence and enhance shareholder value,” the regulatory filing stated. The acquisition underscores UltraTech Cement’s strategic intent to consolidate its position in the competitive cement sector.

India Cements, established in Chennai, has a strong presence in the southern and eastern regions of India, complementing UltraTech Cement’s existing market footprint across the country. The acquisition is expected to leverage synergies between the two companies, potentially optimizing operational efficiencies and enhancing overall competitiveness in the industry.

The transaction is subject to regulatory approvals and customary closing conditions. UltraTech Cement anticipates completing the acquisition in due course, pending the necessary clearances.

This acquisition marks a significant development in the cement industry landscape, signaling strategic consolidation efforts amidst evolving market dynamics and competitive pressures.

Investors and industry analysts will closely monitor the progress of this acquisition, which is poised to reshape the competitive dynamics within India’s cement sector.