Shares of Star Cement Limited (BSE:540575) rallied 8% to INR 247.75 on the BSE on December 27, 2024 after Aditya Birla Group company UltraTech Cement Limited (NSEI:ULTRACEMCO) announced it is buying approximately an 8.69% stake in Star Cement for about INR 8.51 billion. "The Board of Directors of the Company at its meeting considered the proposal and approved making an investment to acquire non-controlling minority stake upto 37.0 million equity shares of Star Cement at a price not exceeding INR 235 per share, excluding STT; stamp duty and other levies," UltraTech said in a regulatory filing. It was stated that some promoters and promoter group entities of Star Cement propose to sell their equity holdings and have approached the company.
Media reports had earlier stated that Ambuja Cement, a part of the Adani Group, was in talks to acquire Star Cement as part of its expansion strategy in the Northeast, where Star Cement holds a significant market share. However, Star Cement dismissed these reports, stating that they were speculative and clarifying that no such discussions were underway. The acquisition is expected to be completed within one month and would be an all-cash deal.
Star Cement Limited is an India-based cement company. The Company is engaged in the manufacturing and selling of Cement Clinker and Cement. Its integrated cement plant is based in a location in the idyllic town of Lumshnong in Meghalaya and three grinding units, two at Sonapur near Guwahati, Assam and one at Mohitnagar near Jalpaiguri Town in West Bengal. The Company’s products include Star Weather Shield Cement, Star Dhalai Master Cement, Star Cement Portland Pozzolana Cement (PPC), and Star Cement Ordinary Portland Cement (OPC). Its Star Cement OPC includes OPC 53 & 43 Grade. Star Cement PPC is a blended cement created by combining OPC clinker with gypsum and pozzolanic materials. The Company also offers comprehensive solutions, including technical and home-building guidance. Its subsidiaries include Star Cement Meghalaya Limited, Star Century Global Cement Private Limited, Star Cement North East Limited, Star Cement (I) Limited, Ri Pnar Cement Private Limited, and others.
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