New Delhi, Feb 25 (PTI) Aditya Birla group firm UltraTech Cement on Tuesday said its board has declared the scheme of demerger of the cement business of Kesoram Industries to be effective from March 1, 2025.

Under the scheme, the cement business of Kesoram Industries will be merged with UltraTech Cement.

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The board of UltraTech at its meeting held on Tuesday "declared the scheme (with a swap ratio of 1:52) to be effective from March 1, 2025," the largest cement maker said in a regulatory filing.

As per the scheme, UltraTech will issue "one fully paid-up equity share of Rs 10 each of the Company for every 52 fully paid-up equity shares of Rs 10 each held by equity shareholders of Kesoram Industries".

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It will issue 54.86 lakh fully paid-up 7.3 per cent nonconvertible redeemable preference (NCRP) shares of Rs 100 each in exchange of 90 lakh 5 per cent cumulative NCRP shares of Rs100 each of Kesoram preference shareholders.

Additionally, 8.64 lakh fully paid-up 7.3% nonconvertible redeemable preference shares of Rs 100 each will be issued in exchange for 19.19 lakh optionally convertible redeemable preference shares of Rs 100 each of the Demerged Company held by Kesoram's preference shareholders.

The scheme of arrangement was approved by the board of the two companies on November 30, 2023.

It has received the subsequent clearances from regulatory bodies as CCI and also from the National Company Law Tribunal.

After the demerger of the cement division, Kesoram will be left with transparent paper and rayon business.

This demerger will add over 7 million tonnes per annum (MTPA) cement production to UltraTech.

Ultratech, a USD 8.4 billion Building Solutions Company, is the third largest cement producer in the world, outside of China, with a consolidated Grey Cement capacity of 183.06 MTPA.

In the cement business, the Aditya Birla group firm is expanding its capacity through acquisitions and capacity enhancement as it faces competition from billionaire Gautam Adani-led Adani Group's Ambuja cement, which is the second largest player and is also scaling its capacity.

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