The cement battle in one of the largest developing nations is getting tighter as the race is now narrowing down to a few major players. In a recent development, Aditya Birla Group-owned Ultratech Cements gained a major 4.59 per cent or Rs 511.85, taking the overall value to Rs 11,553.55.
This jump came to pass after reports that Ultratech making a major market move came to pass.
According to various reports, the Mumbai-based company is set to buy a major stake of 23 per cent in Tamil Nadu-based India Cements. The Chennai-based company, which also owns the IPL team Chennai Super Kings, is a major player in the southern market, with a revenue of over Rs 4,000 crore. | (Photo: birlacorporation.com)
India Cements and Ultratech Make Gains
According to various reports, the Mumbai-based company is set to buy a major stake of 23 per cent in Tamil Nadu-based India Cements. The Chennai-based company, which also owns the IPL team Chennai Super Kings, is a major player in the southern market, with a revenue of over Rs 4,000 crore.
This could help Ultratech expand its footprint in southern India. This comes at a crucial time, as on the other end of the cement spectrum, Adani Group has been consolidating its position with its acquisition of ACC and Ambuja Cements in the recent past.
And it is not just Ultratech Cements that has had a good day so far at the equity markets. India Cements also gained close to 10 per cent since the beginning of the day before dropping marginally to take gains of 8.58 per cent or Rs 22.54, taking the cumulative value of Rs 285.16 per share at 11:08 IST.
It is not just these cement companies that saw their shares surge; in addition, other aforementioned names also appear to be rallying in green on a day when the markets have scaled historic highs. | Representational Image
Cement Sector See Large Gains
This could indicate investors and their vision of the potential of the company, the future prospects of India Cements and the direction that it could take after the deal is brought to fruition in the coming time.
It is not just these cement companies that saw their shares surge; in addition, other aforementioned names also appear to be rallying in green on a day when the markets have scaled historic highs.
The aforementioned ACC Cements also jumped 1.88 per cent or Rs 48.80, taking the overall value to Rs 2,639.70. Ambuja Cements gained 0.40 per cent or Rs 2.65, taking the overall value to Rs 2,639.70 per share.
