UltraTech Cement to Divest 6.49% Stake in The India Cements as Part of Strategic Realignment
UltraTech Cement, India's largest cement manufacturer, has approved the sale of its 6.49% stake (2,01,12,330 equity shares) in The India Cements Limited through a stock exchange offer. This strategic portfolio realignment decision was made by UltraTech's Committee of Directors and Officers. The sale will be conducted via an offer for sale mechanism, adhering to SEBI and stock exchange regulations. UltraTech recently reported strong Q1 FY2026 results with a 13.05% increase in consolidated net revenue and a 49% rise in profit after tax compared to Q1 FY2025. The company also expanded its grey cement capacity by 3.5 MTPA, reaching a total capacity of 192.26 MTPA.

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UltraTech Cement , India's largest cement manufacturer, has announced a significant move in its investment portfolio. The company's Committee of Directors and Officers has approved the sale of its 6.49% stake in The India Cements Limited (ICEM) through a stock exchange offer. This decision is part of UltraTech's strategic portfolio realignment initiative.
Details of the Stake Sale
According to the disclosure made by UltraTech Cement to the stock exchanges, the company plans to sell up to 2,01,12,330 equity shares of The India Cements. This represents 6.49% of the issued and paid-up equity share capital of ICEM. The sale will be conducted through an offer for sale mechanism on the stock exchange, in compliance with applicable laws and regulations set by the Securities and Exchange Board of India (SEBI) and the stock exchanges.
Strategic Move
UltraTech Cement describes this divestment as part of a strategic portfolio realignment. This move suggests that the company is reassessing its investments and focusing on core business strategies. By divesting its stake in The India Cements, UltraTech may be looking to streamline its portfolio and potentially reallocate resources to areas that align more closely with its long-term objectives.
Timing and Execution
The decision to sell the stake was made during a meeting of UltraTech's Committee of Directors and Officers, which commenced at 3:15 p.m. and concluded at 3:35 p.m. on August 20, 2025. The quick decision-making process indicates that this move was likely part of a well-considered strategy rather than a sudden development.
Market Implications
This sale could have implications for both UltraTech Cement and The India Cements in the stock market. Investors will be watching closely to see how this transaction affects the share prices of both companies and whether it signals any broader trends in the cement sector.
UltraTech's Recent Performance
UltraTech Cement has been performing strongly in recent times. In the first quarter of the fiscal year 2026, the company reported:
Financial Metric | Q1 FY2026 | Q1 FY2025 | Year-on-Year Change |
---|---|---|---|
Consolidated Net Revenue | 21,275.00 | 18,819.00 | 13.05% |
EBITDA | 4,591.00 | 3,187.50 | 44.00% |
Profit After Tax | 2,226.00 | 1,493.96 | 49.00% |
All figures in Rs. crore
Expansion and Capacity
UltraTech has been actively expanding its capacity. The company added 3.5 MTPA of grey cement capacity in the first quarter of FY26, bringing its total capacity to 192.26 MTPA. This expansion aligns with UltraTech's goal to become the largest cement-selling company in the world outside of China.
As the cement industry continues to evolve, UltraTech Cement's decision to divest its stake in The India Cements marks a significant step in its corporate strategy. Stakeholders will be keenly observing how this move fits into UltraTech's broader plans for growth and market leadership in the coming years.
Historical Stock Returns for UltraTech Cement
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
-2.18% | -1.38% | +1.10% | +14.00% | +11.31% | +200.48% |