Radhakishan Damani's Winning Move: Inside the UltraTech Cement-India Cements Deal
Radhakishan Damani's Winning Move: Inside the UltraTech Cement-India Cements Deal
A Remarkable Deal
A Remarkable Deal
Renowned investor Radhakishan Damani and his associates recently offered their 23% stake in India Cements to UltraTech Cement for a staggering ₹1,889 crore on June 27. This sale now no longer handiest showcases Damani's funding acumen however additionally marks a full-size milestone in his economic journey.
Renowned investor Radhakishan Damani and his associates recently offered their 23% stake in India Cements to UltraTech Cement for a staggering ₹1,889 crore on June 27. This sale now no longer handiest showcases Damani's funding acumen however additionally marks a full-size milestone in his economic journey.
Strategic Investment Growth
Damani started making an investment in India Cements with a modest 2.43% stake in 2015. Over the years, he gradually expanded his holdings. By March 2024, Damani, his brother Gopikishan, and associated entities held almost 21% of the company, demonstrating a well-deliberate and strategic technique to investment.
Profitable Returns
The overall acquisition fee for Damani's stake in India Cements changed to between ₹600-seven hundred crore. By promoting at ₹277 in keeping with share, the deal earned him ₹1,889 crore, almost tripling his preliminary investment. This highlights Damani's great capacity to generate substantial returns through strategic investments.
The overall acquisition fee for Damani's stake in India Cements changed to between ₹600-seven hundred crore. By promoting at ₹277 in keeping with share, the deal earned him ₹1,889 crore, almost tripling his preliminary investment. This highlights Damani's great capacity to generate substantial returns through strategic investments.
Potential Missed Opportunity
Had Damani waited for UltraTech's open offer at ₹390 according to share, his stake might have been really well worth around ₹2,694 crore, 1.five instances greater than the June 27 deal. However, the better rate protected a managed top rate paid to the promoter group, making the selection to promote in advance a calculated move.
UltraTech Cement’s Strategic Acquisition
UltraTech Cement’s Strategic Acquisition
UltraTech Cement's buy of India Cements marks a strategic step toward consolidating the enterprise in South India. With this acquisition, UltraTech's possession will upward thrust to 55.49%, triggering an open offer and substantially improving its marketplace position.
UltraTech Cement's buy of India Cements marks a strategic step toward consolidating the enterprise in South India. With this acquisition, UltraTech's possession will upward thrust to 55.49%, triggering an open offer and substantially improving its marketplace position.
Industry Consolidation
Analysts view UltraTech's acquisition as a key motive force for consolidation in South India's cement marketplace. ICICI Securities said that the pinnacle 5 gamers will now manage 53% of the marketplace, up from 42%. However, with over 30 gamers, the marketplace stays fragmented, and extra potential keeps to project profitability.
Analysts view UltraTech's acquisition as a key motive force for consolidation in South India's cement marketplace. ICICI Securities said that the pinnacle 5 gamers will now manage 53% of the marketplace, up from 42%. However, with over 30 gamers, the marketplace stays fragmented, and extra potential keeps to project profitability.
Future Growth Prospects
UltraTech Cement's grey cement ability in India is predicted to exceed two hundred million tonnes via means of FY27, developing at approximately 12% annually. Emkay's file suggests this enlargement will result in industry-main quantity boom and progressed go back ratios because of decrease working and capital expenses, in spite of short-time period profitability pressures from marketplace competition.
UltraTech Cement's grey cement ability in India is predicted to exceed two hundred million tonnes via means of FY27, developing at approximately 12% annually. Emkay's file suggests this enlargement will result in industry-main quantity boom and progressed go back ratios because of decrease working and capital expenses, in spite of short-time period profitability pressures from marketplace competition.