UltraTech to acquire minority stake in Star Cement from promoters in ₹851-crore deal

UltraTech Cement acquires 8.69% stake in Star Cement for ₹851 crore, expanding its capacity through strategic acquisitions.

Leading cement producer UltraTech Cement on Friday (December 27, 2024) said it will acquire a minority stake of 8.69% from the promoters of Meghalaya-based Star Cement in a deal worth up to ₹851 crore.

UltraTech Cement will by pick up stakes from Rajendra Chamaria and his family's holdings, part of the promoter group, sources told PTI.

Only the Chamaria family is selling its stake in the company, while other promoters who control Century Ply remain committed and are not divesting any shares, the sources said.

Rajendra Chamaria, when asked for comments, did not deny the development but refrained from divulging further details.

"The Chamarias are gradually selling out and have approached co-promoters like Sajjan Bhajanka and Sanjay Agarwal. Currently, the Chamarias' holdings are estimated to be around 13-14%. Any new investor will not have a board seat," the sources close to the development said.

According to the latest shareholding data, the total stake of all promoter shareholders with the surname Chamaria stands at 11.25%.

The development comes three days after the Aditya Birla group firm completed the acquisition of a controlling stake in India Cements Ltd, turning it into its subsidiary.