Radhakishan Damani and Associates Sell India Cements Shares for ₹1,889 Crore

Billionaire investor Radhakishan Damani and his associates have sold 23% of their equity in India Cements for ₹1,889 crore. The transaction was carried out at an average price of ₹267.74 per share on the BSE. UltraTech, a leading cement manufacturer in India, bought the entire block of shares, aiming to strengthen its presence in the southern market. This acquisition will boost UltraTech’s market share in South India, where it currently holds an 11% share.

Earlier this month, the Adani group, a competitor, also expanded its footprint in South India by acquiring Penna Cement. In this deal, Radhakishan Damani sold 3.5 crore shares, while his brother Gopikishan Damani sold another 2.5 crore shares. Other sellers included Kiran Devi Damani, Shrikanta Devi Damani, Derive Investments, and Derive Trading & Resorts Pvt Ltd.

UltraTech Cement announced in a regulatory filing that its board had approved the purchase of up to 7.06 crore equity shares of India Cements, which represents about 23% of the company’s equity share capital. UltraTech, the largest cement producer in India, has an annual production capacity of 152.7 million tons and aims to reach 200 million tons by 2028. In comparison, the Adani group has a capacity of 89 million tons and is targeting 140 million tons by the same year.

Radhakishan Damani and his family have been increasing their stake in India Cements over the past few years. For example, Damani raised his stake to 4.7% in the December quarter of 2019, up from 1.3% in the September quarter of the same year.

Shares of India Cements surged to a 52-week high of ₹299 on the BSE, with the stock rallying nearly 28% in just two days. The stock closed the day at ₹293.15 on the BSE, up 11.5%.