Shares of Star Cement surged 7.8% to ₹247.75 on the BSE on Friday following Ultratech Cement’s announcement to acquire a non-controlling minority stake in the company. This strategic move further solidifies Ultratech’s dominance as India’s largest cement producer, enhancing its foothold in the sector.
Market Buzz: Star Cement Shares Rally
At 9:25 AM, Star Cement’s stock was trading at ₹240.15, marking a 4.5% gain against the BSE Sensex’s modest 0.38% rise. By mid-morning, a combined 4.8 million shares had exchanged hands across the BSE and NSE, reflecting heightened investor interest.
In contrast, Ultratech Cement shares also saw a 1.2% intraday increase, hitting a high of ₹11,594.85.
Details of the Ultratech-Star Cement Deal
Ultratech Cement’s Board of Directors has approved an investment to acquire a non-controlling stake in Star Cement, involving up to 37 million equity shares at a maximum price of ₹235 per share. Excluding statutory charges, the acquisition cost is estimated at ₹851 crore, representing an 8.69% stake.
The acquisition process is expected to be completed within a month, as per Ultratech Cement’s regulatory filing.
Star Cement’s Growth Trajectory
Star Cement has demonstrated consistent financial growth over recent years. In FY2023-24, the company achieved a turnover of ₹2,910.66 crore, surpassing ₹2,704.84 crore in FY23 and ₹2,221.81 crore in FY22. This steady upward trend positions Star Cement as an attractive investment for Ultratech Cement’s expansion strategy.
Ultratech Cement’s Strategic Consolidation
The acquisition of Star Cement shares is part of Ultratech’s broader strategy to strengthen its market position. Recently, Ultratech completed the purchase of 101.3 million equity shares of India Cements, increasing its stake in the company to 55.49%. This acquisition made India Cements a wholly-owned subsidiary of Ultratech Cement.
With the addition of Star Cement to its investment portfolio, Ultratech continues to deepen its influence across India’s cement industry. By leveraging these strategic acquisitions, Ultratech aims to enhance its production capabilities and maintain its leadership in the highly competitive cement market.
Star Cement’s Trading Highlights
Star Cement’s share prices showcased robust performance in recent trading sessions. The stock hit a day high of ₹247.30 and a low of ₹230.50, within a 52-week range of ₹169.55 to ₹256.00. The rally in shares reflects investor confidence in the company’s growth potential and Ultratech’s strategic involvement.
This deal not only reinforces Ultratech Cement’s market position but also underscores its commitment to driving growth through strategic investments in India’s thriving infrastructure and construction sectors.
