Star Cement share price rises 48% as UltraTech announces picking up stake. Inches close to 1 year high

Stock Market Today: Star Cement share price gained up to 8% in morning trades on Friday as UltraTech announced buying a stake in the company.

Ultratech Cement in its release on the exchanges on 27 December announced that its Board of directors has approved buying stakes in Star Cement

As per the release by UltraTech, the Board of Directors of the Company at its meeting held today considered the proposal and approved making an investment to acquire non-controlling minority stake upto 3.70 crores equity shares of Star Cement at a price not exceeding Rs. 235/- per share, excluding STT; stamp duty and other levies.

Star Cement share price opened at share price at ₹237.80, on the BSE on Friday, higher than previous close of ₹229.75. The Star Cement share price thereafter saw intraday highs of ₹247.75 marking gains of almost 8%. Star Cement share price was inching towards its 52 week or 1 year high of ₹238.35.

UltraTech share price on the other hand opened at ₹11594.85 on the BSE on Friday, higher than the previous close of ₹11457.30. 

UltraTech has been buzzing with news as has completed the Acquisition of stake in India Cements too. UltraTech after receving clearance for Competition Commission Of India had informed the exchanges on 24 December of having completed acquisition of 32.72% stake in India Cements.

As per the release by UltraTech, the company has completed acquisition of 10,13,91,231 equity shares representing 32.72% of the equity share capital of The India Cements Limited. 

This, together with the existing shareholding of 7,05,64,656 equity shares (22.77%) of the equity share capital of ICEM, has resulted in the Company’s shareholding increasing to 17,19,55,887 equity shares representing 55.49% of The India Cements Limited equity share capital, 

Consequently,  India Cements Limited has become a subsidiary of UltraTech Cement with effect from 24th December, 2024.

India Cements Limited has larger presence in South India, and uits acquisition will help UltraTech gai market share in South, Nevertheless Star Cement has strong presence in East India , though UltraTech is currently acquiring non-controlling stakes in It.

Analysts have remained positive on UltraTech in this ongoing wave of consolidations. As per analysts at Elara Securities India Pvt Ltd UltraTech Cement, being an industry leader, is expected to be the key beneficiary of consolidation in the industry in the long term as it is likely to have the highest pie in industry profits 

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

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