Star Cement shares rose 3% as UltraTech Cement acquires stake in the company

Shares of Star Cement surged 3.31 per cent to ₹237.35 on the BSE at 11.10 AM on Friday.

UltraTech Cement, a leading cement producer in India and part of the Aditya Birla Group, has acquired an 8.69 per cent stake in Star Cement for ₹851 crore. This move aims to further strengthen UltraTech’s position as the country’s largest cement producer. 

The acquisition involved purchasing 3.70 crore equity shares at ₹235 per share. Star Cement, a prominent player in North-Eastern India, currently has a production capacity of 5.7 million tonnes per annum (MTPA). The company is actively expanding its capacity to 9.7 MTPA by 2025-26 and plans to further increase it to 12 MTPA by 2027. 

Star Cement reported a revenue growth of 8 per cent in the last fiscal year, reaching ₹2,911 crore compared to ₹2,705 crore in the previous year. 

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The company on December 24 announced the closure of its trading window for all Directors, Officers, Designated Persons of the Company and their immediate relatives. According to its exchange filing, the trading window will remain closed from January 1, 2025, until 48 hours after the unaudited financial results for the third quarter and nine months ending December 31, 2024, are approved by the Board of Directors and filed with the stock exchanges.

Furthermore, the date of the Board meeting to approve these results will be announced in due course.

The stock hit a 52-week high of ₹255.95 on May 25 and it hit low of ₹169.80 on January 18 on the BSE.