UltraTech Cement, India's largest cement manufacturer, has announced plans to sell up to 6.49% of its stake in India Cements through an offer for sale (OFS). The decision, approved on August 20, 2025, by UltraTech's committee of directors and officers, involves the sale of up to 20,112,330 equity shares of India Cements. This move aims to reduce UltraTech's holding in India Cements to 75% in order to comply with regulations set by the Securities and Exchange Board of India (SEBI) regarding public shareholding.
The offer for sale is scheduled to be open from August 21 to August 22. The floor price for the OFS has been set at ₹368 per share. Based on this floor price, the stake sale could potentially raise nearly ₹740 crore. Some reports suggest the deal could be worth approximately ₹745 crore.
UltraTech Cement held an 81.49% stake in India Cements at the end of the June quarter of the financial year 2026. Following the stake sale, its holding will reduce to 75%. The company acquired a 32.72% stake in India Cements from promoters and their associates for ₹3,954 crore in July 2024. Subsequently, UltraTech announced an open offer of ₹3,142.35 crore to acquire an additional 26% stake from public shareholders. On February 4, 2025, UltraTech Cement acquired approximately 8.06 crore additional equity shares (26% stake) of India Cements from public shareholders through its open offer. With this acquisition, UltraTech's holding in India Cements increased from 55.49% to 81.49%, thereby reducing public shareholding to 18.51%.
As per regulatory requirements, UltraTech must restore the minimum public shareholding within 12 months, i.e., by February 3, 2026. The present OFS is designed to meet this regulatory requirement.
On August 20, shares of India Cements closed 0.92% lower at ₹370. UltraTech Cement's shares closed at ₹12,860 on the Bombay Stock Exchange (BSE).
In other news, UltraTech Cement is expected to meet its capacity target of 200 million tonnes in the ongoing financial year, a full year ahead of schedule. Kumar Mangalam Birla, chairman of the Aditya Birla Group, stated that UltraTech is on track to cross 200 million tonnes of annual capacity in FY26, accelerating from the original FY27 goal. As of March 2025, the cement maker's capacity stood at 188.8 mtpa. The company plans to invest ₹9,000-10,000 crore on capital expenditure in FY26.
