UltraTech Cement, India's largest cement manufacturer, announced on August 20, 2025, that it will offload up to 6.49% of its stake in India Cements. The stake sale, approved by UltraTech Cement's board, involves up to 20,112,330 equity shares of India Cements. The sale will be executed through an open market offer via the stock exchange mechanism. However, the company has not disclosed the deal value.
This decision comes after UltraTech Cement gained control of India Cements in July 2024. In December 2024, UltraTech Cement completed the acquisition of 32.72% of India Cements' equity share capital, which, combined with its existing shareholding, increased UltraTech's stake to 55.49%. Consequently, India Cements became a subsidiary of UltraTech. Earlier in July 2024, UltraTech acquired a 23% stake in India Cements from investor Radhakishan Damani. Following this, the promoter group of India Cements approached UltraTech to sell their holding in the company.
According to the Times of India, in July 2024, Kumar Mangalam Birla controlled UltraTech Cement acquired a 32.7% stake in India Cements for ₹3,954 crore, making UltraTech the majority shareholder in the south-based cement manufacturer with a 55% holding.
At the close of markets on August 20, 2025, UltraTech Cement's shares were priced at ₹12,872. During the trading day, the stock experienced a high of ₹12,930 and a low of ₹12,765. As of August 20, 2025, UltraTech Cement shares were trading at ₹12,860 per scrip on the BSE, after a 0.03% increase.
In a statement, UltraTech Cement said they found it appropriate to acquire the stake in India Cements. Kumar Mangalam Birla, chairman of Aditya Birla Group, stated that the India Cements opportunity enables UltraTech to serve the southern markets more effectively and accelerates their path to exceeding 200 MTPA capacity.
Speaking to shareholders on August 19, 2025, UltraTech Cement chairman Kumar Mangalam Birla said that the company will reach its target of 200 million tonnes per annum capacity a year ahead of its guidance of FY27. UltraTech's capacity stood at 188.8 mtpa as of March 2025, meaning the company needs to add 28.8 mtpa of organic capacity in FY26. In the annual report, MD KC Jhanwar mentioned UltraTech plans to invest ₹9,000-10,000 crore on capex in FY26.
Analysts at Axis Securities noted that UltraTech's expansion plans are expected to consolidate its market leadership and help it gain additional market share. The company's growth is likely to be supported by strong demand, better pricing, upcoming capacity additions, ramp-up of recently commissioned plants, and the advantage of lower commodity costs.
UltraTech Cement is engaged in the manufacturing and sale of cement and cement-related products. The company offers Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland Slag Cement (PSC), Composite Cement (CC), and Ready-Mix Concrete (RMC).
