Best Cement Stock: Cement sector leading company UltraTech Cement Limited has announced the acquisition of 8.69% stake in Star Cement Limited for ₹851 crore. The deal involves the purchase of 3.7 crore equity shares at a price not exceeding ₹235 per share. This is exclusive of taxes and other fees.

UltraTech Cement decided to make this investment after the promoters and promoter group of Star Cement proposed to sell their equity stake. The transaction was approved at the board meeting of UltraTech Cement on December 27. The move represents a strategic investment by UltraTech in Star Cement in the form of a non-controlling minority stake.

Further, Star Cement witnessed a huge trade, with 3.36 crore shares or 8.3% equity of the company, valued at ₹766 crore, getting exchanged in the block deal window. As a result, Star Cement shares were trading over 7% higher at ₹247.30 (9:20 am). Earlier, on December 20 this month, the Competition Commission of India (CCI) approved the acquisition of India Cements Limited (ICL) by UltraTech Cement Limited. Also bought stake in India Cements Earlier, in July 2024, UltraTech Cement announced the purchase of a 32.72% stake from the promoters and their affiliates of India Cements in a deal worth Rs 3,954 crore. The move was aimed at strengthening its expansion in the fast-growing and competitive southern cement market, especially in Tamil Nadu. Also, UltraTech had also announced an open offer of Rs 3,142.35 crore, which included an offer to buy 26% stake from ICL shareholders. The Indian cement industry, which is seeing acquisitions of smaller players and increasing competition between two corporate groups, expects improved sales, higher margins, and a pick-up in demand in 2025. It is expected to grow sales by around 8%, aided by increased spending on large government infrastructure projects. After a weak performance in October, cement volumes gradually improved in November. International brokerage firm CLSA says it is positive about demand rebound in the second half of FY25 and FY26. Among cement players, CLSA's preference is for UltraTech Cement.