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Chettinad Cement Corporation has raised its stake in Hyderabad-based Anjani Portland Cement to 66.08 per cent by acquiring a 17.08 per cent stake through an open offer.
The open offer was triggered after Chettinad Cement entered into a share purchase agreement in March to acquire up to 61.74 per cent holding from the promoters of Anjani Portland for ₹70 crore.
Chettinad Cement has said its agreement with promoters has a built-in flexibility to ensure that its holding is limited at 75 per cent, the maximum allowed for a firm to remain listed. As the open offer attracted a good response, Chettinad had limited its share purchase from the promoters to 49 per cent.
Chettinad Cement has to shell out ₹29.5 crore now to buy shares from the promoters and an additional ₹19.4 crore to fund the open offer.
The acquisition will help Chettinad Cement, which has a presence predominantly in Tamil Nadu and Karnataka, enter Andhra Pradesh and Odisha.
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