According to SEBI regulations, publicly listed companies must maintain at least 25% public shareholding. UltraTech’s stake in India Cements crossed the 75% threshold after a fully subscribed open offer for an additional 26%—an uncommon outcome for such offers, as reported by The Times of India.
India Cements has until February 3, 2026, to bring its public shareholding back within the regulatory threshold. This can be achieved through a secondary share sale, preferential allotment, rights issue, or bonus issue. If the company opts for rights or bonus issues, UltraTech would be required to forgo its entitlement to the new shares. Based on the current market price of Rs 333 per share, the 7% stake is valued at more than Rs 667 crore.
An UltraTech spokesperson told The Times of India, “According to SEBI regulations, at least 25 per cent of India Cements’ equity must be held by the public within 12 months after the open offer ends, which was on February 4 of this year. UltraTech will ensure compliance within the stipulated timeline.”
Oversubscription and industry trends
UltraTech, part of the Aditya Birla Group, acquired the loss-making India Cements in December 2024 for Rs 9,060 crore, expanding its footprint in southern India. The open offer’s oversubscription pushed its ownership past the regulatory ceiling.
In FY25, over a dozen companies, including Sanghi Industries (Adani Group), Aditya Birla Sun Life AMC, Bikaji Foods International, and Cello World, saw promoter holdings reduced from above 75% to within the permissible limit, according to The Times of India.
India Cements turns a corner
Speaking during UltraTech’s April earnings call, CFO Atul Daga said India Cements had achieved Ebitda breakeven in the first quarter post-acquisition and sold over one million metric tons of cement in March, a milestone he described as a “second case of sweet success.”
With cement prices firming up in the southern market starting April, Daga projected stronger results ahead. India Cements is targeting Ebitda of over Rs 500 per metric ton in FY26, aiming to surpass Rs 800 in FY27 and hit four-digit levels thereafter.
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