India Cement Ltd (ICL) would remain a listed entity as the acquirer, UltraTech, has no "intention to delist" the South-based rival cement company, the Aditya Birla group firm said in a regulatory filing.

The ownership of the Indian Premier League (IPL) cricket team Chennai Super Kings (CSK), controlled by India Cements promoters N Srinivasan and his family, will remain unchanged, according to the filing.

Axis Capital, managing the open offer for UltraTech, said: “The acquirer does not have an intention to delist the target company (India Cements) pursuant to this open offer.”

UltraTech proposes to acquire up to 8.05 crore shares of India Cements, representing 26 per cent of its equity from the public shareholders.

On Sunday, the board of UltraTech approved the purchase of a 32.72 per cent stake of the promoters and their associates in India Cements Ltd.

Last month, the Kumar Mangalam Birla-led cement giant had purchased 22.77 per cent of India Cements from the open markets at ₹268 apiece.

While UltraTech will buy nearly 10.14 crore shares from the promoters at ₹390 per share for over ₹3,954 crore, its stake will rise to 55.49 per cent, necessitating an open offer in line with Sebi regulations.

Staff assurance

N. Srivasan, managing director, India Cements, assured employees that they do not have to fear about their jobs because of a new promoter.

“There will be space for everybody. There is no need for anybody to feel threatened or insecure about their future,’’ he said.

Srinivasan added that the Aditya Birla group has personally assured him that it will follow the same policies.

The future is as solid as when I was head of the plant. You constitute the core of the cement business. You must work with full vigour, and that everything will be the same as before. The future is good,” he added.

According to Srinivasan, in a competitive landscape, the company took all steps to control costs and it was relying on an investor to acquire a significant amount of land that it had owned. But that did not happen.
``Therefore, we reverted to the solution we had considered earlier, which is selling the company’’, he noted.

The stock markets, meanwhile, gave a thumbs-up to the transaction with shares of UltraTech ending with gains of 1.69 per cent at ₹11,877.20 on the BSE.

At this price, it has a market cap of ₹3,42,891.58 crore. The India Cements share ended lower by 0.65 per cent at ₹372.15.

Financial services company Societe Generale on Monday divested 0.67 per cent stake in India Cements for ₹78 crore through an open market transaction.

According to the bulk deal data available with the National Stock Exchange (NSE), Paris-based Societe Generale offloaded 20.61 lakhs shares, amounting to a 0.67 per cent stake in India Cements.

The shares were disposed of at an average price of ₹378.15 apiece, taking the deal value to ₹77.95 crore.

At the end of June quarter, Societe Generale owned 1.62 per cent stake in India Cements.