Leading cement maker UltraTech has completed the acquisition of promoters’ 32.72 per cent stake in India Cements Ltd, following which N. Srinivasan and other promoters of the South-based cement maker have stepped down. The Aditya Birla Group firm has completed the acquisition of 10.13 crore equity shares of India Cements Ltd (ICL).
“This, together with the existing shareholding of 7.05 crore equity shares (22.77 per cent) of the equity share capital of ICL, has resulted in the company’s shareholding increasing to 17.19 crore equity shares representing 55.49 per cent of ICL’s equity share capital,” UltraTech had informed in a late-night regulatory filing on Tuesday.
Consequently, ICL “has become a subsidiary of the company” with effect from December 24, 2024, it added.
On Wednesday, ICL informed that pursuant to the completion of the transaction and due to the consequent cessation of control by the existing promoters over the company, N. Srinivasan has stepped down as vice-chairman and managing director.
Besides, his daughter Rupa Gurunath, wife Chitra Srinivasan and V.M. Mohan have also stepped down from the board of the company, according to a regulatory filing by ICL.
Moreover, “pursuant to the consummation of the transaction on December 24 2024, UltraTech has acquired sole control of the company and has become the promoter of the company in accordance with the LODR Regulations”, informed ICL.
Further, the board also recorded the resignation of certain independent directors — S. Balasubramanian Adityan, Krishna Srivastava, Lakshmi Aparna Sreekumar and Sandhya Rajan with effect from the end of business hours on December 25, 2024, it added.
The board has also appointed four new directors — K.C. Jhanwar, Vivek Agrawal, E.R. Raj Narayanan and Ashok Ramachandran. Besides, three independent directors — Alka Bharucha, Vikas Balia and Sukanya Kripalu — have come on board of ICL.
Last week, the Competition Commission of India (CCI) cleared over ₹7,000-crore deal, wherein billionaire Kumar Mangalam Birla promoted UltraTech Cement had proposed to acquire a majority stake in India Cements Ltd.