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UltraTech Cement Ltd mentioned on Thursday it should purchase the cement enterprise of Kesoram Industries Ltd in an all-stock deal valued at Rs 5,379 crore, boosting its capability ambitions in a extremely aggressive sector.
As part of the deal, UltraTech will difficulty one share for each 52 shares of Kesoram and provides UltraTech possession of two built-in cement items in Karnataka and Telangana.
The deal implies a suggestion value of Rs 173.15, a 24.1% premium to Kesoram’s final shut of Rs 139.45.
“The transaction will present UltraTech the chance to increase its footprint within the extremely fragmented, aggressive and quick rising Western and Southern markets within the nation,” UltraTech mentioned in a press release.
The proposed transaction will speed up UltraTech’s path to attaining its said objective of 200 million tons every year (mtpa) cement capability in India, it added.
Individually, Kesoram Industries mentioned it withdrew scheme of demerger of arm Cygnet Industries and permitted scheme of association with UltraTech Cement of the demerged firm.
The cement enterprise of Kesoram consists of two built-in cement items at Sedam (Karnataka) andBasantnagar (Telangana) with a complete capability of 10.75 mtpa. Out of this whole capability, 8.50 mtpa is clinkerbacked and a pair of.25 mtpa is surplus grinding capability. The cement enterprise additionally has a 0.66 mtpa packing plantin Solapur, Maharashtra.
On Thursday, UltraTech’s scrip on BSE closed 3% larger at Rs 9,000.65.
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