N Srinivasan has stepped down as CEO and MD after the completion of UltraTech’s deal transaction and due to the consequent cessation of control by the existing promoters over the company.
[26/12, 3:25 am] precious: N Srinivasan, chief executive officer (CEO) and managing director (MD) of India Cements, and other board members tendered their resignations with immediate effect on Wednesday, December 25, 2024 following UltraTech Cement’s 32 per cent acquisition of the South-based cement maker.
Earlier this month, the Aditya Birla Group-owned cement major completed the acquisition of 10.13 crore equity shares of India Cements, representing 32.72 per cent of the company’s equity share capital. With the completion of the stake, India Cements became a subsidiary of UltraTech Cement.
India Cements informed in a regulatory filing that N Srinivasan has stepped down as vice chairman and managing director pursuant to the completion of the transaction and due to the consequent cessation of control by the existing promoters over the company. Srinivasan’s daughter, Rupa Gurunath, wife, Chitra Srinivasan, and V M Mohan also resigned from the board
[26/12, 3:26 am] precious: Also Read: India Cements board undergoes rejig, CEO N Srinivasan resigns after UltraTech’s acquisition deal
India Cements board members resign after UltraTech acquisition
India Cements also informed in its exchange filing on Wednesday, “Pursuant to the consummation of the Transaction on December 24 2024, UltraTech Cement has acquired sole control of the company and has become the promoter of the company following the LODR Regulations.”
India Cement’s board also recorded the resignation of certain independent directors: S Balasubramanian Adityan, Krishna Srivastava, Lakshmi Aparna Sreekumar, and Sandhya Rajan, effective December 25, 2024, at the end of business hours. The board has appointed four new directors – K C Jhanwar, Vivek Agrawal, E R Raj Narayanan and Ashok Ramachandran.
Also Read: UltraTech Cements receives green flag from CCI to acquire majority stake in India Cements
[26/12, 3:26 am] precious: Three independent directors – Alka Bharucha, Vikas Balia, and Sukanya Kripalu – have joined ICL. Last week, the Competition Commission of India (CCI) cleared over ₹7,000-crore deal, wherein billionaire industrialist Kumar Mangalam Birla promoted UltraTech Cement had proposed to acquire a majority stake in India Cements Ltd.
India Cements- UltraTech Deal
The competition watchdog granted UltraTech Cement clearance to acquire up to 26 per cent of India Cements’ paid-up equity share capital by way of an open offer. On July 28, UltraTech announced the acquisition of a 32.72 per cent stake in India Cements from promoters and their associates in a ₹3,954-crore deal, which will expand its footprint in the southern cement market.
Also Read: Intense competition eats into UltraTech’s Q2 net profit
[26/12, 3:26 am] precious: Besides, Ultratech had also announced an open offer of ₹3,142.35 crore to acquire 26 per cent of India Cements from its shareholders. Earlier this year, UltraTech Cement acquired 23 per cent of the company’s shares. It acquired Damani-group’s stake in India Cements through two block deals, estimated to be around ₹1,900 crore.
In securing the approval from the CCI, J Sagar Associates, Advocates & Solicitors (JSA), acted as the sole advisor to UltraTech Cement Limited (UltraTech). UltraTech leads the Indian cement market with a consolidated capacity of 156.66 million tonnes of grey cement per annum (MTPA).
Kumar Mangalam Birla’s promoted firm manufactures and sells grey cement, white cement, ready-mix concrete, clinker, and building products in the country. UltraTech Cements is a subsidiary of Grasim Industries. India Cements operates core and non-core businesses. Meanwhile, India Cements manufactures and sells grey cement and ready-mix concrete.
India Cements shares last settled 1.75 per cent higher at ₹372.55 apiece on the BSE. UltraTech Cement shares settled 0.63 per cent lower at ₹11,395.55 apiece on the BSE. The Indian cement industry is witnessing consolidation and heightened rivalry between two corporate houses — Kumar Mangalam Birla-led Aditya Birla Group and Gautam Adani-led Adani Group — snapping smaller players.
[26/12, 3:27 am] precious: India Cement’s board is set to undergo a comprehensive restructuring after UltraTech Cement’s ₹7,000-crore acquisition of the Chennai-based cement maker. India Cement’s Chief Executive Officer N Srinivasan, along with several other board members, tendered their resignations with immediate effect on Wednesday, December 25, according to a BSE filing.
N Srinivasan’s daughter Rupa Gurunath, his wife Chitra Srinivasan, and VM Mohan have also resigned from the board of directors. Independent directors such as S Balasubramanian Adityan, Krishna Srivastava, Lakshmi Aparna Sreekumar and Sandhya Rajan have also resigned, according to the exchange filing
[26/12, 3:27 am] precious: Also Read | N Srinivasan resigns as CEO, MD of India Cements after UltraTech deal
According to the exchange filing, CFO R Srinivasan will retire on January 1, 2025.
The development came after the Competition Commission of India (CCI) on December 20 approved the acquisition of nearly 10.13 crore equity shares, which represents 32.72 per cent of the share capital of India Cements by UltraTech.
