December 23, 2024
New Delhi, India
India Cements Shares
India Cements’ share price surged by 11% to a new 52-week high during Monday’s trading session, following the Competition Commission of India’s (CCI) approval of UltraTech Cement Limited’s acquisition of a significant stake in the company.
Key Details of the Deal:
- Stake Acquisition: UltraTech Cement will acquire 32.72% of India Cements’ paid-up equity from promoters and up to 26% through an open offer.
- Valuation: The deal is valued at ₹3,954 crore for the promoter stake, with an open offer worth ₹3,142.35 crore.
- Strategic Move: This acquisition strengthens UltraTech’s position in the southern cement market amid rising competition from the Adani Group.
Market Performance:
- Intraday Movement: India Cements’ stock opened at ₹362 on the BSE, hitting a high of ₹376.30.
- Technical Outlook: Analysts see strong support at ₹360 and resistance at ₹380. A breakout above ₹380 could propel the stock to ₹390–400 levels, driven by bullish momentum and favorable technical indicators.
Sector Context:
The Indian cement industry is witnessing a wave of consolidation, with major players like the Aditya Birla Group and the Adani Group vying for dominance. Smaller firms, such as India Cements, are becoming targets for acquisitions as corporate giants seek to expand capacity and market share.
Disclaimer:
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