UltraTech Cement Ltd is acquiring a majority stake in India Cements, a month after it bought nearly 23 per cent in the N. Srinivasan-led company.

The UltraTech board on Sunday approved the purchase of a 32.72 per cent stake of the promoters & their associates in India Cements Ltd.

On June 27, UltraTech had bought 22.77 per cent from the open markets at ₹268 per share. UltraTech had called the purchase a non-controlling financial investment.

``Post this financial investment, the promoter group approached us as they wanted to sell their holding in the company, and we found it appropriate to acquire their stake in the company,’’ a statement from the country’s largest cement company said.

The transaction will see UltraTech purchasing nearly 10.14 crore shares from the promoters at ₹390 apiece for a little over ₹3,954 crore. It will result in its stake rising to 55.49 per cent.

UltraTech will therefore be coming out with an open offer to acquire an additional 26 per cent from the public shareholders in line with Sebi regulations.

UltraTech will also make an open offer for up to 8.05 crore equity shares at a price of ₹390 per share, which is a 4 per cent premium to the closing price of the Chennai-based company on Friday.

If the open offer is fully subscribed it will entail ₹3,142 crore — and the total cost will come to ₹8,985 crore including the financial investment in June, the purchase from promoters and the open offer (if it is fully subscribed).

The Kumar Mangalam Birla-led company said in a regulatory filing it has executed share purchase agreements to acquire 6.81 crore shares of India Cements representing 21.98 per cent of its equity share capital from EWS Finance & Investments Pvt Ltd, Srinivasan N., Chitra Srinivasan, Rupa Gurunath and S.K. Asokh Baalaje, who are the promoters and members of the promoter group.

It will acquire another 1.99 crore shares representing 6.44 per cent from Rupa Gurunath, Trustee of Security Services Trust and Rupa Gurunath, Trustee of Financial Service Trust, who are members of the promoter group.

Another 1.33 crore equity shares equivalent to 4.30 per cent of India Cement’s equity will be bought from Sri Saradha Logistics Private Ltd, a related party.

For UltraTech Cement, the acquisition will solidify its presence in India particularly at a time rival Gautam Adani has also been taking the inorganic route.

Last month, the Adani group had acquired Hyderabad-based Penna Cement Industries Ltd (PCIL) for an enterprise value of ₹10,422 crore.