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Shares of India Cements Ltd., recently acquired by UltraTech Cement Ltd., surged by up to 11% during Monday’s trading session.
Why India Cements shares surged up to 11% (Representative image)
Shares of India Cements Ltd., recently acquired by UltraTech Cement Ltd., surged by up to 11% during Monday’s trading session.
The rally in India Cements’ stock followed the Competition Commission of India (CCI) approving the over Rs 7,000-crore deal, in which UltraTech Cement, led by billionaire Kumar Mangalam Birla, will acquire a majority stake in India Cements.
This approval came less than two weeks after the CCI issued a show-cause notice to UltraTech, seeking clarification on the proposed deal. The acquisition aims to strengthen UltraTech’s market position amid growing competition from the Adani group, which is expanding its capacity through acquisitions.
As part of the deal, UltraTech will acquire 10.13 crore equity shares of Rs 10 each, representing 32.72% of India Cements’ equity share capital, held by the promoters, their associates, and other shareholders. UltraTech will also make an open offer for up to 8.05 crore equity shares, or 26% of the company’s equity, at Rs 390 per share—a 15% premium over India Cements’ Friday closing price of Rs 339.
In July, UltraTech had announced plans to acquire a 32.72% stake in India Cements from its promoters and associates for Rs 3,954 crore, expanding its footprint in the competitive and rapidly growing southern cement market. Additionally, UltraTech has launched a Rs 3,142.35 crore open offer to acquire another 26% from public shareholders.
India Cements’ stock surged 11% to a high of Rs 376.20 on the NSE, while UltraTech Cement rose over 1% to reach a day’s high of Rs 11,582.45.
On the charts, the stock is trading well above all its key exponential moving averages (10, 20, 50, 100, and 200-day EMA), indicating strong bullish momentum.
According to Trendlyne data, the stock is hovering around the 35 level on the Relative Strength Index (RSI), which is considered a mid-range position, suggesting a neutral momentum with potential for both upside and downside movement.
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