UltraTech Cement falls 5% on heavy volumes

According to media reports, UltraTech is eyeing Holcim-Lafarge assets to cement global position.

Shares of the country’s largest cement manufacture UltraTech Cement have dipped 5% to Rs 2,346 on National Stock Exchange (NSE).

The stock opened at Rs 2,475 and hit a low of Rs 2,342 so far. Till 1320 hours, a combined 497,000 shares changed hands on the counter against an average sub 200,000 shares that were traded daily in past two weeks on NSE and BSE.

According to media reports, Kumar Mangalam Birla-led UltraTech Cement will bid for assets owned by French cement company Lafarge SA in southeastern Brazil.

The bid will be submitted on 19 October. The acquisition of assets in Brazil, if it happens, will be the company’s largest overseas deal, Mint report suggests quoting unnamed peoples familiar with the development.

Lafarge and Holcim have put a few assets on the block globally to reduce their dominance in a particular region.

Both the companies have placed a proposal before the Brazilian competition authority to sell three integrated cement plants and two grinding stations with annual capacity of 3.6 million tonnes and a ready-mix plant all located in the south-eastern Brazil, the Business Line report suggests.

Meanwhile, the NSE has sought clarification from UltraTech Cement Limited with respect to recent news item captioned "UltraTech eyes Holcim-Lafarge assets to cement global position"

in this regard, NSE has advised the company to provide clarification/confirmation on the news item in detail including whether such event/negotiations/article stated in published news were taking place? If so, the company advised to provide the said information along with the sequence of events in chronological order and the material impact of this article on the company.