N Srinivasan, chief executive officer and managing director of India Cements, and other board members tendered their resignations on Wednesday, following UltraTech Cement's 32 percent acquisition of the cement company.
Earlier this month, the Aditya Birla Group-owned cement major Ultra Tech completed the acquisition of 10.13 crore equity shares of India Cements, representing 32.72 percent of the company's equity share capital. With the completion of the sale, India Cements became a subsidiary of UltraTech Cement.
India Cements said in a regulatory filing that N Srinivasan has stepped down as vice chairman and managing director following the completion of the transaction and due to the subsequent cessation of control by the existing promoters over the company. Srinivasan's daughter Rupa Gurunath, wife Chitra Srinivasan, and V M Mohan also resigned from the board.
India Cements also said in the filing: “Pursuant to the consummation of the transaction on December 24 2024, UltraTech Cement has acquired the sole control of the company and has become the promoter of the company following the LODR Regulations.”
India Cement's board also recorded the resignation of certain independent directors: S Balasubramanian Adityan, Krishna Srivastava, Lakshmi Aparna Sreekumar, and Sandhya Rajan. The board has appointed four new directors - K C Jhanwar, Vivek Agrawal, E R Raj Narayanan, and Ashok Ramachandran.
Three independent directors - Alka Bharucha, Vikas Balia, and Sukanya Kripalu - have joined ICL. Last week, the Competition Commission of India (CCI) cleared over ₹7,000-crore deal, wherein billionaire industrialist Kumar Mangalam Birla-promoted UltraTech Cement had proposed to acquire a majority stake in India Cements Ltd.
The competition watchdog granted UltraTech Cement clearance to acquire up to 26 percent of India Cements' paid-up equity share capital through an open offer. On July 28, UltraTech announced the acquisition of a 32.72 percent stake in India Cements from the promoters and their associates in a ₹3,954-crore deal, which would expand its footprint in the southern cement market.
Besides, Ultra Tech had also announced an open offer of ₹3,142.35 crore to acquire 26 percent of India Cements from its shareholders. Earlier this year, UltraTech Cement acquired 23 percent of the company's shares. It acquired Damani-group’s stake in India Cements through two block deals, estimated to be around ₹1,900 crore.
UltraTech leads the Indian cement market with a consolidated capacity of 156.66 million tonnes of grey cement per annum (MTPA).
The firm manufactures and sells grey cement, white cement, ready-mix concrete, clinker, and building products in the country. UltraTech Cements is a subsidiary of Grasim Industries. India Cements operates core and non-core businesses. Meanwhile, India Cements manufactures and sells grey cement and ready-mix concrete.
India Cements shares last settled 1.75 percent higher at ₹372.55 apiece on the BSE. UltraTech Cement shares settled 0.63 percent lower at ₹11,395.55 apiece on the BSE.
The Indian cement industry is witnessing consolidation and heightened rivalry between two corporate houses -- Kumar Mangalam Birla-led Aditya Birla Group and Gautam Adani-led Adani Group -- snapping smaller players.
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