Grasim offer for CemCo oversubscribed

Fifteen months after it opened its ambitious gambit for L&T’s cement business, the Aditya Birla group is poised to finally take control of Ultra Tech CemCo Ltd, into which the 16.5Mt cement division of L&T Ltd has been spun off.

The open offer by Grasim Industries, a Birla group company, for a 30 per cent stake in CemCo at INR342 per share, has been oversubscribed by more than two times. It is learnt that the financial institutions (UTI, LIC and GIC) have tendered their entire shareholding of about 30 per cent in Ultra Tech CemCo, for which they will get about IN767 crore.

Grasim will accept 60% of the tendered shares by paying out Rs 1,279 crore to acquire a 30% stake in CemCo.