Star Cement Promoter Group Sells 8.69% Stake to 'UltraTech' for Rs. 851 crores

The largest cement company in India based on capacity, UltraTech Cement Ltd., has announced that it has paid Rs. 851 crores to acquire an 8.69% share in Star Cement Ltd. from its promoter group.

UltraTech stated in a filing to the exchange on Friday, December 27, that the shares were purchased during the block deal window for Rs. 235 a share.

This is a non-controlling minority stake that UltraTech has acquired in Star Cement, the company stated in its exchange filing.

Based in the northeastern state of Meghalaya, Star Cement reported Rs. 2,910 crores in total revenue for the fiscal year 2024.

Additionally, earlier this week, UltraTech completed the purchase of a 32.72% interest in India Cements, which set off the company's open offer, which will be conducted at a price of Rs. 390 per share.

Star Cement boasts a dealer network of nearly 2,000 and a retailer network of over 12,500. Its capacities include 7.7 MTPA for grinding and 6.1 MTPA for clinker.

Star Cement holds a 26.5% market share in the northeastern market. 10.6% of total sales are made up of premium sales, according to the investor presentation the company released after the September quarter.

Star Cement was announced as the preferred bidder for six limestone blocks in Rajasthan's Beawar district during the September quarter. The blocks span 95.68 hectares and are estimated to have geological limestone reserves of 63.9 million tonnes.

The company plans to invest Rs. 380 crores in capital expenditures during the second half of the current financial year. It also has two upcoming units in the Assamese districts of Silchar and Jorhat.