UltraTech Cement to Divest 6.49% Stake in The India Cements as Part of Strategic Realignment

2 min read     Updated on 20 Aug 2025, 03:51 PM
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Jubin VergheseBy ScanX News Team
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Overview

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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*this image is generated using AI for illustrative purposes only.

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 Day5 Days1 Month6 Months1 Year5 Years
-2.18%-1.38%+1.10%+14.00%+11.31%+200.48%
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UltraTech Cement Accelerates Capacity Expansion, Set to Become World's Largest Cement Seller Outside China

2 min read     Updated on 20 Aug 2025, 09:36 AM
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Reviewed by
Jubin VergheseBy ScanX News Team
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Overview

UltraTech Cement is on track to surpass 200 million tonnes per annum (MTPA) capacity by the end of the current fiscal year, a year earlier than planned. The company added 42.6 MTPA in FY25 through organic growth and acquisitions, reaching 188.8 MTPA consolidated capacity. UltraTech aims to become the largest cement-selling company globally outside China, with a network covering 80% of India. Q1 FY26 saw strong financial performance with consolidated net revenue of Rs. 21,275 crore and a 49% increase in profit after tax. The company also focuses on sustainability, achieving 1 GW of renewable energy capacity and reducing CO₂ emissions to 549 kg per tonne.

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*this image is generated using AI for illustrative purposes only.

UltraTech Cement , India's leading cement manufacturer, is poised to achieve a significant milestone in its growth trajectory. The company is set to cross the 200 million tonnes per annum (MTPA) capacity mark by the end of this fiscal year, a full year ahead of its original FY27 timeline. This announcement was made by Chairman Kumar Mangalam Birla during the company's 25th Annual General Meeting (AGM).

Rapid Capacity Expansion

UltraTech Cement has been on an aggressive expansion path, adding a substantial 42.6 MTPA of capacity in FY25 alone. This expansion was achieved through a combination of organic growth (16.3 MTPA) and strategic acquisitions (26.3 MTPA), including stakes in India Cements and Kesoram Industries' cement business. As of March 2025, the company's consolidated capacity stood at an impressive 188.8 MTPA.

Global Leadership

With this accelerated growth, UltraTech Cement is positioning itself to become the largest cement-selling company globally, outside of China. The company's extensive network now includes:

  • 34 integrated units
  • 30 grinding units
  • 9 bulk terminals across India

This network covers more than 80% of the country's geography through over 145,000 channel partners.

Financial Performance

The company's growth strategy is backed by strong financial performance. In Q1 FY26, UltraTech reported:

Financial Metric Amount (Rs. crore) Year-on-Year Change
Consolidated net revenue 21,275.00 Up from 18,819.00
EBITDA 4,591.00 Up 44%
Profit after tax 2,226.00 Up 49%

Dividend Announcement

Reflecting the company's robust performance, the Board of Directors has proposed a dividend of Rs. 77.50 per equity share of Rs. 10 each, totaling Rs. 2,283.75 crore.

Sustainability Initiatives

UltraTech Cement is not just focusing on growth but also on sustainable practices. Key sustainability highlights include:

  • Achieving 1 GW of installed renewable energy capacity for captive use
  • Reducing net CO₂ emissions to 549 kg per tonne, down from 632 kg in 2017
  • Becoming 4.9 times water positive, managing over 120 million cubic meters of water in FY25
  • Utilizing over 44 million tonnes of recycled and alternative raw materials in cement production

Market Outlook

Chairman Birla noted India's projected GDP growth of 6.5% in FY25, with the March quarter showing a robust 7.4% growth driven by construction and manufacturing sectors. This positive economic outlook bodes well for the cement industry and UltraTech's growth prospects.

As UltraTech Cement continues its expansion and sustainability efforts, it remains committed to being a force for nation-building, aligning its vision with India's aspirations for 2047 - the centenary of the country's independence.

UltraTech Cement shares closed 0.7% higher at Rs 12,855.70 on the BSE, reflecting investor confidence in the company's growth strategy and market position.

Historical Stock Returns for UltraTech Cement

1 Day5 Days1 Month6 Months1 Year5 Years
-2.18%-1.38%+1.10%+14.00%+11.31%+200.48%
UltraTech Cement
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