N Srinivasan Resigns: N Srinivasan has resigned from the post of Managing Director (MD) and Chief Executive Officer (CEO) of India Cements. He no longer had any shareholding in the company nor was he its promoter. Let us tell you that N Srinivas is also the owner of the Chennai Super Kings cricket team.
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These are the Reasons for N Srinivasan Resigns
UltraTech Cement, one of the promoters of India Cement, has purchased a 55.49% stake in the company. UltraTech has acquired this holding by investing a total of Rs 7000 crore in two phases. According to the terms of this deal, Srinivasan had to leave his post.
N Srinivasan Resigns: Even Chennai Super Kings is No Longer a Partner
India Cements said in an exchange filing, ‘The company’s former promoters, Chitra Srinivasan, Roopa Gurunath, EVVS Finance and Investments Private Limited, SK Ashok Balaje, Financial Services Trust, Security Services Trust, and Chennai Super Kings Cricket Limited have stepped down from the company. Now he does not hold equity shares of India Cement. He is no longer a promoter or member of the company.
UltraTech Bought a 32.72% Stake in July
In fact, on July 28 this year, UltraTech purchased a 32.72% stake in India Cement. Then the company’s stake in India Cement was 22.77%. After the deal, it became 55.49%. This deal was approved by the Competition Commission of India (CCI) on 24 December.
Also in June, a 22.77% Stake was Bought for ₹1,885 Crore
The board of directors of UltraTech Cement had in June approved the acquisition of a 22.77% stake in India Cements. The company bought 7.06 crore shares of India Cements at Rs 268 per share. The total value of this deal was around Rs 1,885 crore.
UltraTech can buy 26% more stake Additionally, CCI has also approved UltraTech Cement to acquire up to 26% of the paid-up equity share capital of India Cements through an open offer. UltraTech manufactures and sells gray cement, white cement, ready-mix concrete, clinker, and building products in India.
UltraTech’s profit down 36% in Q2FY25 Aditya Birla Group-owned cement company’s consolidated profit in the second quarter of FY 2024-25 declined by 36% year-on-year (YoY) to ₹820 crore. The company made a profit of ₹1,280 crore in the same quarter a year ago (Q2FY24).
UltraTech Shares Rise 3.39% in One Year
Shares of UltraTech Cement fell 0.98% to close at Rs 11,360 on Tuesday (December 24). The company’s stock has fallen 0.85% in the last month. Whereas, it has given positive returns of 4.74% in the last 6 months and 13.39% in one year. Ultrateca shares have risen 8.56% this year.
N Srinivasan, CEO and MD of #IndiaCements, and other board members tendered their resignations with immediate effect on Dec 25, 2024 following #UltraTechCement's 32% acquisition of the South-based cement maker.
— Mint (@livemint) December 26, 2024
Read more: https://t.co/GBlR45ylqg
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UltraTech is the Country’s Largest Cement Company.
UltraTech is the largest cement company in the country, with a total production capacity of 152.7 MPTA (152.7 million tonnes per annum). Earlier this year, the company acquired Kesoram’s cement business for an enterprise value of ₹7,600 crore.
- About India cements
- India Cements was established in 1946 by S. N. N. Shankaralinga Iyer
- The first plant was established in 1949 at Thalaiyuthu, Tamil Nadu.
- The company is capable of producing 1.45 crore tonnes of cement in a year.
- Of this, 1.30 crore tonnes is produced from Tamil Nadu and 15 lakh tonnes from Rajasthan.
- The company’s shares have given returns of 26.72% in the last month, 43.99% in 6 months, and 73.27% in one year.
- India Cement shares have risen 42.37% this year.
Jay Chavda He is the Founder and Writer of businesspulsecare.com. He is an I.T Engineer, Freelancer, Businessman. He posts Business, Stock/Share Market, Finance Related News and updates on the website. 🔗