UltraTech Cement should divest 7% stake in India Cements to fulfill SEBI norms
Based on SEBI laws, publicly listed corporations should preserve a minimum of 25% public shareholding. UltraTech’s stake in India Cements crossed the 75% threshold after a totally subscribed open supply for a further 26%—an unusual consequence for such affords, as reported by The Instances of India.
India Cements has till February 3, 2026, to convey its public shareholding again inside the regulatory threshold. This may be achieved by means of a secondary share sale, preferential allotment, rights problem, or bonus problem. If the corporate opts for rights or bonus points, UltraTech can be required to forgo its entitlement to the brand new shares. Primarily based on the present market value of Rs 333 per share, the 7% stake is valued at greater than Rs 667 crore.
An UltraTech spokesperson advised The Instances of India, “Based on SEBI laws, a minimum of 25 per cent of India Cements’ fairness have to be held by the general public inside 12 months after the open supply ends, which was on February 4 of this 12 months. UltraTech will guarantee compliance inside the stipulated timeline.”
Oversubscription and trade tendencies
UltraTech, a part of the Aditya Birla Group, acquired the loss-making India Cements in December 2024 for Rs 9,060 crore, increasing its footprint in southern India. The open supply’s oversubscription pushed its possession previous the regulatory ceiling.
In FY25, over a dozen corporations, together with Sanghi Industries (Adani Group), Aditya Birla Solar Life AMC, Bikaji Meals Worldwide, and Cello World, noticed promoter holdings diminished from above 75% to inside the permissible restrict, in response to The Instances of India.
India Cements turns a nook
Talking throughout UltraTech’s April earnings name, CFO Atul Daga mentioned India Cements had achieved Ebitda breakeven within the first quarter post-acquisition and bought over a million metric tons of cement in March, a milestone he described as a “second case of candy success.”
With cement costs firming up within the southern market beginning April, Daga projected stronger outcomes forward. India Cements is focusing on Ebitda of over Rs 500 per metric ton in FY26, aiming to surpass Rs 800 in FY27 and hit four-digit ranges thereafter.
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