UltraTech Cement acquires equity stake in UAE-based RAK Cement

News: Ultratech Cement has acquired a 29.39% equity stake in the UAE-based RAK Cement Co (for White Cement and Construction Materials) for $101.1 million (Rs 771 crore) through its subsidiary company

Views: The target company generated revenue of Rs 482.5 crore for CY21. Based on this, the deal valuation works out to 5.4x its revenue which looks expensive in our view considering average valuations of 3.5-4x fetched by Indian Units which offer higher growth potential

Impact: Neutral