UltraTech Cement gains on board nod for expansion, increase in FII limit

The stock was trading 2% higher at Rs 4,236 on the BSE after the company said its board approved the setting up of a 3.5 mtpa integrated cement plant at Pali, Rajasthan

UltraTech Cement was trading 2% higher at Rs 4,236 on the BSE after the company said its board approved the setting up of a 3.5 mtpa integrated cement plant at Pali, Rajasthan.

The commercial production from the plant is expected to commence by June 2020, UltraTech Cement said in a press release.

The plant is being set up in one of the fastest- growing markets in the country and the highest cement-consuming State in the North zone. The plant will cater to the Western Rajasthan market, where the firm does not have a significant presence, it added.

With this expansion, the company will have a foot print across the country with 50 plant locations, along with 103 ready-mix concrete plants.

Meanwhile, the board also approved a proposal to increase investment limits by Registered Foreign Portfolio Investors, including Foreign Institutional Investors, from the existing 30% of the paid-up equity share capital, to 40%, it said.