UltraTech to sell India Cements’ stake worth up to $85.6 million

UltraTech Cement said on Wednesday it will offload a stake of up to 6.5% in its unit India Cements, valued at 7.45 billion rupees ($85.6 million) according to Reuters calculations, via open market transactions.

India Cements’ stock ended 0.8% lower at 370.25 rupees. Shares of UltraTech, India’s largest cement maker, ended flat at 12,874 rupees.

The company, which took control of India Cements in July last year, said the sale was to comply with “applicable laws”. India’s market regulator mandates that controlling shareholders, called promoters in India, can only hold a stake of up to 75%.

UltraTech owns an 81.5% stake in India Cements, exchange data as of June-end showed, with the rest held by public shareholders.