UltraTech's open offer for India Cements shares to open on September 19

UltraTech Cement’s open offer for shareholders of India Cements is likely to open on September 19, and close on October 3. The mandatory open offer by UltraTech follows the company acquiring more than 55% stake in the Chennai-based cement-maker in the last two months. UltraTech will buy 26% in India Cements, or up to 8,05,73,273 shares of UltraTech will buy 26% in India Cements, or up to 8,05,73,273 shares of the company at Rs 390 a piece. The detailed public statement for the offer was issued on Friday, and UltraTech can increase the offer price for shares of India Cements latest by September 17, details from an advertisement by UltraTech showed. These timelines are tentative, the company said. The country’s largest producer of cement had acquired a non-controlling near-23% financial stake in India Cements from investor Radhakishan Damani in June, following it up with the stake buy of another 32.72% stake from the company’s promoters and its associates in July. UltraTech’s 55.49% stake has, consequently, triggered an open offer as per regulations of the Securities and Exchange Board of India. The company will spend a maximum of Rs 3,142 crore for acquiring 26% through the pen offer. This is at a significant premium to the stake it bought from Radhakishan Damani at around Rs 268 a piece. Shareholders holding shares, either in the physical or dematerialized format, can tender shares by intimating their stockbrokers within trading hours for the secondary market within the tendering period. A separate acquisition window will be provided by the exchanges to facilitate placing these orders. On Friday, shares of India Cements closed at Rs 372.04 on the NSE, up more than 2% from the previous close. The shares have surged nearly 82% since the start of June.

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