The world of cement and construction is gearing up for a showdown and some of the biggest stakeholders in the industry are taking the competition to the next level.
After the mega-acquisitions conducted by the Adani Group, Aditya Birla Group-owned Ultratech Cement also made its move to capture larger grounds in the market.
Birla vs Adani; Clash of Titans
The reports of the company's plans to buy stakes in Chennai-based India Cements appear to have been welcomed by many investors at Dalal Street. Shares of both companies have risen and are trading in green in the first half of the day's trade on Monday, July 29. Both shares saw growth of close to 1 per cent.
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It was on July 28 that reports emerged stating that the Ultratech board of directors gave a green signal to the purchase of a 32.71 per cent stake in promoters, including the likes of N. Srininvasn in the cement company.
This purchase is valued at Rs 3954 crore for Rs 390 per share. This offer has now triggered an open offer at the same price. Ultratech has total capacity of 154.86 million tonnes per annum (mtpa) of grey cement. | Image: UltraTech (Representative)
This purchase is valued at Rs 3954 crore for Rs 390 per share. This offer has now triggered an open offer at the same price. Ultratech has total capacity of 154.86 million tonnes per annum (mtpa) of grey cement.
This would be reinforced by India Cements's involvement, who have a capacity of 14.45 million tonnes per annum (mtpa) of grey cement.
Shares of Companies Rise
Adani Group, the other major player in the market, also made some priced acquisitions when it bought big names from the Holcim Group, further expanding its footprint in the industry.
Both company shares made significant gains as the intraday trade approached the half-way mark on Monday.
The Mumbai-based cement company gained 1.07 per cent or Rs 124.90, climbing to Rs 11,797.95 per share. Meanwhile, India Cements gained 0.71 per cent or Rs 2.65, taking the overall value to Rs 376.70 per share.
