Now Reading: Pilani Investment to sell UltraTech stake worth Rs 1,909 crore
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Pilani Investment to sell UltraTech stake worth Rs 1,909 crore
Pilani Investment and Industries Corporation will sell 1.7 million shares of UltraTech Cement through a block deal on Thursday at a floor price of Rs 11,481 apiece, a 3% discount to Wednesday's…
The Story in Brief
Pilani Investment and Industries Corporation will sell 1.7 million shares of UltraTech Cement through a block deal on Thursday at a floor price of Rs 11,481 apiece, a 3% discount to Wednesday's close. The deal, managed by Jefferies India, is expected to raise up to Rs 1,909 crore, as per a term sheet seen by Mint. Pilani currently holds a 1.5% stake, while promoter entities own over 59%.
The sale comes amid a wave of secondary-market exits by early backers in Indian companies. UltraTech recently reported a 17% jump in Q1 net profit to Rs 2,599 crore and has committed Rs 10,255 crore to expand capacity to over 241 mtpa by FY28. NDTV Profit reported that Pilani may route the proceeds as dividends to the Birla Group, potentially yielding 31%.
The Indian Opinion
Block-deal news often triggers talk of promoter weakness, but Pilani Investment is a core holding company, not a promoter entity. The sale is a routine portfolio realignment, not a vote of no confidence in UltraTech, which posted strong quarterly numbers. The dividend-yield speculation by NDTV Profit seems premature, Pilani has not announced any payout. Watch for the company's next board meeting: the actual dividend decision will tell us more than any estimate.
Sources (3): thehindubusinessline.com, livemint.com, ndtvprofit.com
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
