N Srinivasan on Wednesday resigned as the Chief Executive Officer(CEO) of India Cements after the Competition Commission of India (CCI) cleared over Rs 7,000-crore deal wherein billionaire Kumar Mangalam Birla-promoted UltraTech Cement will acquire a majority stake in India Cements Ltd.
India Cements Ltd (ICL) informed that pursuant to the completion of the transaction and due to the consequent cessation of control by the existing promoters over the company, N Srinivasan has stepped down as Vice Chairman and Managing Director.
Besides, his daughter Rupa Gurunath, wife Chitra Srinivasan and V M Mohan have also stepped down from the board of the company, according to a regulatory filing by ICL.
Moreover, "pursuant to the consummation of the Transaction on December 24 2024, UltraTech has acquired sole control of the company and has become the promoter of the company in accordance with the LODR Regulations", informed ICL.
Further, the board also recorded the resignation of certain independent directors - S Balasubramanian Adityan, Krishna Srivastava, Lakshmi Aparna Sreekumar and Sandhya Rajan with effect from the end of business hours on December 25, 2024, it added.
The board has also appointed four new directors - K C Jhanwar, Vivek Agrawal, E R Raj Narayanan and Ashok Ramachandran. Besides, three independent directors - Alka Bharucha, Vikas Balia and Sukanya Kripalu - have come on board of ICL.
In a regulatory filing, India Cements stated, "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."
Meanwhile, N Srinivasan in a letter cited, "Consequent to the divestment of my entire shareholdings in The India Cements Limited ("ICL"), as one of the 'Promoters' of ICL with UltraTechCement 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."
"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," CCI said in a release on Friday.
The fair trade regulator also granted its clearance to UltraTech Cement to acquire up to 26 per cent of the paid-up equity share capital of India Cements by way of an open offer, it added. UltraTech is engaged in the business of manufacturing and sales of grey cement, white cement, ready-mix concrete, clinker, and building products in India.
"Competition Commission of India approves UltraTech Cement Ltd's acquisition of The India Cements Ltd," the competition watchdog said.
The deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices and promotes fair competition in the marketplace.
*With Agency Inputs
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