Shares of India Cements rally over 30% in one week as UltraTech deal impresses investors

The total stake sold by Damani and his entities comes to around 24% and the sale was done at an average price of Rs 277 apiece. Through the deal, Damani and his controlled entities bagged around Rs 1,914 crore.

UltraTech's stake in Chennai-based India Cements pits it against Adani group's Ambuja and ACC cement companies for gaining ground in terms of .

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Analysts said both Adani and UltraTech have been trying to gain market share and hence consolidation in the cement industry has been an ongoing process now.

"Particularly in South India, there has been a lot of stress. And because of overcapacity and cement prices were not remunerative enough, so companies like India Cements were making losses. So, it is a matter of time that these guys get consolidated by the larger players," said Rakesh Arora, Founder, Go India Stocks.

Analysts at brokerage Prabhudas said competition is expected to increase in the cement industry with players trying to gain market share.

Shares of India Cements have surged approximately 39% in the last one year while in the current calendar year, the stock has increased by 14% as per the BSE analytics. For the same time periods, the stock has displayed Sensex gains of 24.5% and 10% respectively.

The shares of India Cements were trading 2% higher at Rs 299 on BSE around 10:30 am.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)