UltraTech Cement has initiated the sale of up to a 6.49% to 6.5% stake in its subsidiary, India Cements, in a strategic move aimed at adhering to regulatory requirements under India’s minimum public shareholding norms.

The Offer for Sale (OFS), spanning from August 21 to August 22, involves up to 2.01 crore equity shares, and will be conducted via the stock exchange mechanism. UltraTech’s board and its Committee of Directors and Officers approved the sale, which will trim its holding to approximately 75%, in compliance with regulations limiting promoter holdings to 75%.

Valued at around ₹745 crore (approximately $85.6 million), based on the company’s valuation of ₹11,466 crore as of August 21, this divestment allows UltraTech to realign its shareholding structure without sacrificing strategic control.

The announcement triggered a modest stock market response: India Cements shares rose about 2.9%, reaching ₹380.70in early trade. Meanwhile, UltraTech’s share price remained virtually unchanged, reflecting investor acceptance of the mandated reshuffle.

This step follows UltraTech’s acquisition of a majority stake in India Cements in July 2024, which brought its holding close to 81.5%, exceeding the allowable promoter threshold. The divestment serves as a measured effort to comply with SEBI’s minimum public shareholding rule, requiring at least 25% of a listed company’s shares to be publicly held.

In the past, UltraTech secured Competition Commission of India approval and completed its open offer to India Cements shareholders, culminating in the present shareholding structure.

This financial maneuver comes at a time when UltraTech is doubling down on operational expansion. The cement giant, with an installed capacity of 192.26 MTPA as of Q1 FY26, is on track to surpass 200 MTPA by FY26, ahead of schedule.