India Cements share price surges 11% to 52-week high on CCI nod to UltraTech deal
- India Cements share price surged 11% to a 52-week high following the CCI's approval of UltraTech Cement's acquisition of a significant stake in India Cements, comprising 32.72% from promoters and up to 26% through an open offer.
India Cements share price jumped 11% to reach a new 52-week peak during Monday's trading session after the announcement that the Competition Commission of India (CCI) has sanctioned UltraTech Cement Limited's acquisition of The India Cements Limited.
The proposed arrangement involves UltraTech Cement Limited (UltraTech/Acquirer) purchasing 32.72 percent of the paid-up equity share capital of The India Cements Limited (India Cements/Target) from its promoters and promoter group members, as well as acquiring up to 26% of the paid-up equity share capital through an open offer.
The pivotal approval was granted just under two weeks after the regulatory body issued a show cause notice to UltraTech, requesting clarity regarding the proposed transaction, which aims to enhance its market dominance in light of increasing competition from the Adani group, which is expanding its capacity through acquisitions, as reported by PTI.
On July 28, UltraTech Cement disclosed its plan to acquire a 32.72 percent ownership in India Cements from its promoters and associated entities in a deal worth ₹3,954 crore, thereby widening its presence in the dynamic and competitive southern cement sector.
Additionally, Ultratech has revealed an open offer amounting to ₹3,142.35 crore to acquire a 26 percent stake in India Cements from its shareholders. UltraTech is involved in the production and distribution of grey cement, white cement, ready-mix concrete, clinker, and construction products across India.
The Indian cement sector is experiencing a wave of consolidation and increased competition between two major corporate entities—the Aditya Birla Group, led by Kumar Mangalam Birla, and the Adani Group, headed by Gautam Adani—while smaller companies are being acquired.
India Cements share price today
India Cements share price opened at an intraday low of ₹362 apiece on the BSE, the stock touched an intraday high of ₹376.30 per share. According to Riyank Arora, Technical Analyst at Mehta Equities Ltd, India Cement share price is currently trading with major support at 360 and immediate resistance near 380. A breakout above 380 could drive the stock towards 390 and 400 levels, reflecting strong bullish momentum. The overall technical structure appears positive, with the stock poised for a potential breakout, supported by improving volumes and favourable indicators. A sustained move above resistance may attract further buying interest.
On the other side, UltraTech Cement share price today was up about 1.4% on the BSE.
"On a weekly basis, UltraTech Cement faced resistance around the 12,145 level and retraced by over 5% during the prior week. Despite this pullback, the stock continues to trade in a Higher Top and Higher Bottom formation, indicating a bullish long-term trend. On the daily chart, it is forming an Ascending Triangle pattern while holding above the support of the 100-Day Exponential Moving Average (DEMA) and the 50% Retracement Level.
Based on these technical indicators, we recommend buying in UltraTech Cement around 11,200-11,100, with a stop-loss set at 10,540, aiming for potential upside targets of 11,800 and 12,200," said Sachin Gupta, Senior Research Analyst at 5paisa.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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