India Cements shares gain 4% after OFS for non-retail investors opens today

Shares of The India Cements Ltd., now a subsidiary of India’s largest cement company UltraTech Cement Ltd. are trading with gains of over 4% on Thursday, August 21, ahead of the Offer For Sale (OFS) from its parent company.UltraTech’s board on Wednesday has approved the sale of 6.49% stake in India Cements through this Offer for Sale (OFS) process.

The OFS will open for non-retail shareholders today and for retail shareholders on Friday.

Floor price of the OFS has been fixed at ₹368 per share, which is nearly the same as India Cements’ closing price on Tuesday.The 6.49% stake sale will fetch ₹740 crore to UltraTech at the current price. With this sale, UltraTech will also be in compliance with the Minimum Public Shareholding (MPS) norms, bringing its stake down to 75% from 81.49% previously.

In its recent earnings call, UltraTech had highlighted that the southern market of the country could be the next North in terms of growth potential.

India Cements reported a positive Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of ₹83 crore in the June quarter, after multiple quarters of losses.

Shares of India Cements are trading 4.3% higher at ₹386.15. The stock had gained 8% ahead of Thursday’s trading session.