New Delhi: Aditya Birla Group's flagship company UltraTech Cement on Friday announced that it will buy 8.69% stake in Star Cement for Rs 851 crore. After this deal, Star Cement's shares jumped 8% and its value reached Rs 247.75.

UltraTech has proposed to buy 3.70 crore equity shares of Star Cement at a price of over Rs 235 per share. The deal will be all-cash and is likely to be completed within a month. UltraTech has received approval from its board to approve the deal and has given information about it in the exchange filing.

Under this deal, the promoter and promoter group of Star Cement have proposed to sell their equity holdings and for this they have approached the company. Earlier, media reports had said that Ambuja Cement was considering acquiring Star Cement to increase its presence in Northeast India but later Star Cement dismissed these rumors.



Star Cement, which is a big player in the cement market of Northeast India, has an installed production capacity of 7.7 million tonnes per annum (MTPA) with an integrated plant in Meghalaya.

Star Cement shares have seen a spectacular rise in the last one month. The stock has gained Rs 33.96 in a month. Although its return in the last one year has been 34%, in two years it has given great returns to the investors and doubled their money.

Star Cement, established in 2001, has a turnover of ₹ 2,910.66 crore in FY 2024, which was ₹ 2,704.84 crore in FY 2023 and ₹ 2,221.81 crore in FY 2022.

UltraTech is the largest producer in India's cement sector, while Adani Group made big deals in the cement industry in 2022. Adani immediately established his position as the second largest cement producer by acquiring Ambuja Cements Limited and ACC Limited.

Crisil Ratings estimates that Prime Minister Narendra Modi's massive infrastructure development plan—including airports, power plants, roads, bridges, and tunnels—aims to push India's infrastructure investment to ₹15 trillion ($179.2 billion) by March 2026