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UltraTech Cement to acquire 4.8 mtpa Gujarat Cement Unit at enterprise value of Rs 3,800 crore

12 Sep 2013 Evaluate

UltraTech Cement has received an approval for acquisition of the Gujarat Cement Unit of Jaypee Cement Corporation (JCCL), by way of a demerger, comprising of an integrated cement unit at Sewagram and Grinding Unit at Wanakbori. JCCL is a wholly-owned subsidiary of Jaiprakash Associates (JAL). With this acquisition of 4.8 mtpa the company’s current capacity increases to 59 mtpa. The board of the company at its meeting held on September 11, 2013 has approved for the same.

The enterprise value is Rs 3,800 crore besides the actual net working capital at closing. UltraTech will take over all the assets and the liabilities of the unit at closing and the net amount of enterprise value less liabilities taken over will be the consideration. Such consideration will be discharged by allotment of equity shares of UltraTech to the shareholders of JCCL, subject to a maximum value of such equity shares to be Rs 150 crore.

The combined capacity of both the divisions of the Gujarat Unit is 4.8mtpa of cement with 57.5 MW Coal based Thermal Power Plant, limestone reserves for over 90 years at current capacity and a captive Jetty at Sewagram.

The proposed transaction is subject to the approval of shareholders and creditors, sanction of the Scheme of Arrangement by the High Courts, approval of the Competition Commission of India and all other statutory approvals. The company anticipates the transaction to close in 7 to 9 months.

Standard Chartered acted as a Transaction Advisor for the company while Axis Capital acted as Independent Fairness Opinion. Amarchand & Mangaldas & Suresh A. Shroff & Company were Legal Advisor while Bansi S. Mehta & Company acted as Valuation Expert.

Ultratech Cement Share Price

11887.30 59.10 (0.50%)
17-Apr-2026 16:59 View Price Chart
Peers
Company Name CMP
Ultratech Cement 11887.30
Ambuja Cement 458.95
ACC 1431.85
Shree Cement 25301.95
Dalmia Bharat 1972.55
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