Takeover by UltraTech Cement won't hit jobs, Srinivasan assures India Cements' staff
Chennai/IBNS: N. Srinivasan, the vice chairman and managing director of India Cements, has assured his employees that the company's takeover by UltraTech Cement will not impact their career.
"There will be space for everybody. They will not witch hunt anybody and good workers will be rewarded," the industry veteran added.
"Meanwhile, we were dependent upon an investor, who was to pick up a lot of our surplus land and therefore, relieve us of many problems. But that did not happen and therefore, we thought of a solution to sell the company," Srinivasan added.
The price is 4.1 percent higher than India Cements share’s closing price of Rs 374.60 apiece last Friday (July 26), according to reports.
UltraTech Cement, earlier in June 2024, had made a financial investment in N. Srinivasan-headed India Cements to acquire 22.77 percent equity at a price of Rs 268 per share.
With the latest announcement of 32.72 percent acquisition, UltraTech Cement will become the majority shareholder in India Cements with a holding of 55.49 percent stake.
The acquisition of India Cements, which has a total capacity of 14.45 million tonnes per annum (mtpa) of grey cement, including 12.95 mtpa in Tamil Nadu and 1.5 mtpa in Rajasthan, will add 9 percent to UltraTech Cement’s current capacity and augments its capacity share by 2 percent on a pan-India basis.
After the acquisition, UltraTech Cement’s cement capacity would increase to 214 MT, including Kesoram, by FY27E from the current 156 MT ex-Kesoram.
CSK is now an independent entity, separate from India Cements, owned by approximately 1,00,000 shareholders of the Chennai-based firm, reports Firstpost, adding that CSK separated from India Cements around 2015, with shares of the IPL franchise distributed among the shareholders of India Cements at the time, while the majority and controlling stake remained with the N. Srinivasan family.
IBNS
Senior Staff Reporter at Northeast Herald, covering news from Tripura and Northeast India.
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