N Srinivasan resigns as CEO, MD of India Cements after CCI clears Rs 7,000-cr UltraTech deal

N Srinivasan stepped down as Chief Executive Officer (CEO) and Managing Director (MD) of India Cements on Wednesday. This comes days after the Competition Commission of India (CCI) approved over Rs 7,000 crore deal, wherein billionaire Kumar Mangalam Birla-promoted UltraTech Cement will acquire a majority stake in India Cements Ltd.

In a regulatory filing, India Cements announced the exit of its erstwhile promoters and promoter group. "The erstwhile promoters and members of the promoter group, namely Mr. N. Srinivasan, Mrs. Chitra Srinivasan, Mrs. Rupa Gurunath, EVVS Finance & Investments Private Limited, Mr. S.K. Asokh Baalaje, Financial Service Trust, Security Services Trust and Chennai Super Kings Cricket Limited (collectively, 'Erstwhile Promoters'), who no longer hold any equity shares of the Company, cease to be promoters/members of the promoter group of the company."

In a resignation letter, Srinivasan wrote: "Consequent to the divestment of my entire shareholdings in The India Cements Limited ('ICL'), as one of the 'Promoters' of ICL with UltraTech Cement Limited ('Acquirer') and in terms of the Share Purchase Agreement dated 28.07.2024 entered with the Acquirer, I, N. Srinivasan (DIN: 00116726), hereby tender my resignation as Vice Chairman & Managing Director, Director and Chief Executive Officer (KMP) of The India Cements Limited with immediate effect. I also cease to be the Promoter of The India Cements Limited with immediate effect." 

Last Friday, the CCI approved UltraTech Cement's acquisition of The India Cements Limited. "The proposed combination envisages UltraTech Cement Ltd's (UltraTech/acquirer) acquisition of 32.72 per cent of the paid-up equity share capital of India Cements Ltd (India Cements/target) from the promoters and members of the promoter group of India Cements and Sri Saradha Logistics Pvt Ltd."

Additionally, the regulator approved UltraTech Cement to acquire up to 26 per cent of the paid-up equity share capital of India Cements via an open offer. 

UltraTech is a public listed company and is engaged in the business of the manufacture and sale of grey cement, white cement, ready-mix concrete, clinker, and building products in India. UltraTech is also engaged in the provision of building solutions in India. UltraTech is a subsidiary of Grasim Industries Limited, a public listed company.

India Cements is a public listed company and operates both core and non-core businesses. The core business of India Cements is the manufacture and sale of grey cement and ready-mix concrete.