UltraTech to sell India Cements' stake worth up to $85.6 million

By Admin

21 Aug, 2025

Mumbai, August 20, 2025 – UltraTech Cement, India’s largest cement manufacturer, announced on Wednesday that it will sell a stake of up to 6.5% in its unit, India Cements, through open market transactions. The move, valued at around ₹7.45 billion ($85.6 million) as per Reuters’ calculations, comes as part of a regulatory compliance requirement.

Background of the Stake Sale

UltraTech took control of India Cements in July last year, acquiring a significant holding that made it the majority shareholder. As of June-end, UltraTech owned an 81.5% stake in India Cements, while the remaining shares were held by public investors.

According to India’s securities regulations, promoters (controlling shareholders) cannot hold more than 75% in a listed company. To align with these rules, UltraTech is now offloading the excess stake.

Stock Market Reaction

Following the announcement, shares of India Cements ended 0.8% lower at ₹370.25, reflecting some investor caution around the stake sale. On the other hand, shares of UltraTech Cement closed flat at ₹12,874, signaling that the market had largely anticipated the move.

Why This Matters

The transaction is not only a step towards regulatory compliance but also significant for India’s cement industry. With UltraTech already positioned as the market leader, its management of India Cements plays an important role in shaping competition and market dynamics.

By reducing its stake, UltraTech will also allow for a higher level of public participation in India Cements, potentially improving stock liquidity and investor confidence.

Looking Ahead

The stake sale underlines the balancing act between business expansion and regulatory frameworks. As UltraTech continues to strengthen its dominance in the cement sector, this development reflects both its compliance strategy and its long-term approach to maintaining a strong industry presence.