Ramco Industries Limited, a key player in the Indian business landscape, has recently made an acquisition of 1,30,900 shares of The Ramco Cements Limited (TRCL). The total consideration for this transaction amounts to Rs. 12.67 Crores. This acquisition comes under the Board approved limit of Rs. 160 Crores and reflects Ramco Industries’ continued investment strategy. The shares were acquired through stock exchanges, ensuring transparency and compliance with SEBI regulations.

The acquisition is part of Ramco Industries' long-term business plan, focusing on cement industry investments. Despite the stake being relatively small (0.060% of TRCL), this move strengthens its foothold in the cement sector, which has been a cornerstone of the Ramco Group. The shares were purchased at a price of Rs. 966.43 each, including brokerage charges.

TRCL, established in 1957, has a turnover of Rs. 9,392.17 Crores as of the fiscal year 2023-24, making it one of India’s leading cement manufacturers. This acquisition by Ramco Industries is a strategic move aimed at capitalizing on TRCL’s significant market presence. Shri. P.R. Venketrama Raja, the Chairman and Promoter of Ramco Industries, also plays a role in TRCL as its Managing Director. However, this acquisition will not lead to any changes in the management structure of The Ramco Cements.

The investment portfolio of Ramco Industries in TRCL has seen substantial appreciation. Initially valued at Rs. 158.39 Crores, this investment is now worth over Rs. 4,376.25 Crores, marking a remarkable increase of more than 27 times. The acquisition of additional shares aligns with Ramco Industries’ strategy of increasing its stake in established companies within the Ramco Group.

The deal is expected to be completed within nine months, in line with the Board’s approval. Importantly, the acquisition does not require any governmental or regulatory approvals, as per the latest regulatory guidelines from SEBI. There are no related-party transactions involved, and the transaction is being conducted at arm’s length.

This move also underlines Ramco Industries' strong position within the cement industry, where it continues to strengthen its market presence. As the company invests further in its future growth, this acquisition is just one step in an ongoing strategy to maximize value for its shareholders and contribute to the growing demand for cement across India.

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