UltraTech Cement, led by Kumar Mangalam Birla, has announced the acquisition of the building materials business of Kesoram Industries, a company owned by his aunt Manjushree Khaitan. The deal is valued at an enterprise value of ₹7,600 crore. This all-stock mega deal includes the transfer of a manufacturing facility in Telangana to Birla and is a strategic move to accelerate UltraTech Cement’s goal of achieving a capacity of 200 million tonnes in India.
As part of the transaction terms, UltraTech will be issuing one equity share of ₹10 each for every 52 Kesoram shares of ₹10 apiece, implying an offer price of ₹173.15 per share. This represents a 34% premium to Kesoram’s last closing price. Following the announcement of the deal, Kesoram Industries shares saw a 5% increase, reaching an upper circuit limit at ₹146.05 apiece on the BSE.
The acquisition is expected to be completed within nine to 12 months and will increase UltraTech’s cement capacity to 149 million tonnes. This is a significant step towards their target of 200 million tonnes. Kesoram Industries’ total capacity stands at 10.75 million tonnes, which will now contribute to UltraTech’s expanded operations.
This deal represents a major consolidation in India’s cement industry and is indicative of UltraTech’s aggressive growth strategy in this sector.