The Hindu Business Line : UltraTech CemCo to be listed by August 16

ULTRATECH CemCo Ltd, whose management was handed over to Grasim Industries on June 6 by Larsen & Toubro, is likely be listed on the stock exchanges by August 16, according to an official with the A.V. Birla Group.

BSE has, in a circular of August 9 to its members, issued a seven-day notice for listing of 12,43,98,621 equity shares of UltraTech CemCo Ltd of Rs 10 each issued pursuant to the Scheme of Arrangement of the company.

Securities do not get automatically listed on expiry of seven days from the date of the notice, as they are subject to the compliance of the listing procedures, said the circular. But all listing procedures have been complied with, and UltraTech will hopefully get listed around August 16, said the A.V. Birla Group official.

This will be well over a month since the date of it being handed over, at which time it had been announced that UltraTech would be listed "in a few days' time." But the official held that this is not an unduly long time for listing.

"SEBI permission for listing of a company through a non-initial public offer route was obtained only some time ago," he said. Following this, the proposal for listing was made to the stock exchanges.

With the 30 per cent open offer by Grasim Industries for UltraTech going through, the A.V. Birla Group would have 51 per cent stake in UltraTech, 12 per cent remaining with the financial institutions, 11.5 per cent with L&T, and remainder with other institutions and individuals.

The acquisition of majority stake in UltraTech has cost Grasim around Rs 2,200 crore. The open offer was priced at Rs 342 per share.

The board of directors of UltraTech would, apart from Ms Rajshree Birla and Mr Kumarmangalam Birla, consist of Mr Y.M. Deosthalee and Mr J.P. Nayak from L&T, Mr D.D. Rathi and Dr. S. Misra from the A.V. Birla Group, two independent directors — Mr R.C. Bhargava and Mr Arun Gandhi, and two nominees from the Indian financial institutions.

Dr. Misra has been appointed CEO of UltraTech and Mr K.C. Birla (also from the A.V. Birla Group) has been appointed Chief Financial Officer.