UltraTech Cement advances as board approves expansion

UltraTech Cement rose 1.91% to Rs 4,233.30 at 09:16 IST on BSE after the company's board approved greenfield expansion in Rajasthan and hike in investment limits by registered foreign portfolio investors.

The announcement was made on Saturday, 9 December 2017.

Meanwhile, the S&P BSE Sensex was up 146.69 points or 0.44% at 33,396.99.

On the BSE, 465 shares were traded on the counter so far as against the average daily volumes of 17,474 shares in the past one quarter. The stock had hit a high of Rs 4,236.20 and a low of Rs 4,198 so far during the day. The stock had hit a record high of Rs 4,531 on 16 May 2017 and a 52-week low of Rs 3,052 on 27 December 2016.

The large-cap company has equity capital of Rs 274.55 crore. Face value per share is Rs 10.

The board of directors of UltraTech Cement at its meeting held on 9 December 2017 have approved the setting up of a 3.5 mtpa integrated cement plant at Pali, Rajasthan, at an investment of around Rs 1850 crore. The commercial production from the plant is expected to commence by June 2020.

This 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. It will cater to the markets in Western Rajasthan where UltraTech does not have a significant presence. With this expansion, UltraTech will have a foot print across the country with 50 plant locations, alongwith 103 readymix concrete plants, committed to supporting the growth of the nation, the company said.

Seperately, the board of directors of UltraTech Cement at its meeting held on 9 December 2017 have approved the proposal for an increase in the investment limits by Registered Foreign Portfolio Investors (RFPIs) including Foreign Institutional Investors (FIIs) from the existing limit of 30% of the paid-up equity share capital upto 40% of the paid-up equity share capital of the company. The increase will make available more space for the RFPIs to invest in the equity share capital of the company, UltraTech Cement said.

UltraTech Cement's consolidated net profit fell 31.18% to Rs 422.77 crore on 20.2% growth in net sales to Rs 6936.13 crore in Q2 September 2017 over Q2 September 2016.

UltraTech Cement is a leading cement manufacturer in India. It is a part of the Aditya Birla Group.

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