UltraTech Cement board approves Kesoram demerger, green-lights ₹1,800-crore capex plan. Check share swap ratio | Stock Market News

Aditya Birla Group-owned UltraTech Cement’s board of directors on Tuesday, February 25, announced that the company has approved the demerger of Kesoram Industries Limited and a ₹1,800-crore capex investment, according to an exchange filing.

The cement maker’s board has agreed to issue one equity share of ₹10 each for every 52 equity shares of ₹10 each held by Kesoram’s shareholders as of the record date. The share swap ratio will be 1:52 equity shares. 

Kesoram Industries’ preferential shareholders will receive 54.86 lakh fully paid-up 7.3 per cent non-convertible redeemable preference (NCRP) shares of ₹100 each in exchange for 90 lakh 5 per cent cumulative NCRP shares of ₹100 each held by the shareholders.

The company has also decided to issue 8.64 lakh fully paid-up 7.3 per cent NCRP shares of ₹100 per share in exchange for 19.19 optionally convertible redeemable preference shares of the same face value. 

The record date will be decided by the demerged firm, Kesoram Industries, according to the filing date. 

Capex Move

UltraTech Cement also announced its plan to spend ₹1,800 crore in capital expenditure (capex) for expansion into the wires and cables manufacturing segment. The company will raise the funds internally as well as with certain undisclosed external borrowings.

“The board has approved a capital expenditure of Rs1,800 crore, to be spent over the next two years, which will be financed through a mix of internal accruals and/or borrowings,” said UltraTech in the BSE filing.

“The proposed entry into this segment of the construction value chain through its Building Products Division, is in line with the Company’s strategy to strengthen its position as a comprehensive Building Solutions Provider,” said the firm in a press release. 

UltraTech Cement Share Price

UltraTech Cement shares closed 0.68 per cent lower at ₹10,968.45 in Tuesday’s trading session, compared to ₹11,043.35 at the previous market close. The company announced the approval of the demerger plan and fresh capex investment after market hours on February 25.

UltraTech shares have given stock market investors nearly 160 per cent return in the last five years and 10.27 per cent gains in the last one-year period. However, the stock has lost 4.34 per cent in 2025.

The cement maker’s shares hit their 52-week high level of ₹12,143.90 on December 16, 2024, while the 52-week low level was at ₹9,250.10 on April 19, 2024, as per the BSE data. 

Kesoram Industries shares closed 0.83 per cent lower at ₹209.10, compared to ₹210.85 at the previous market close. 

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