UltraTech Cement tumbles on buzz of eyeing Holcim-Lafarge assets

UltraTech Cement declined 4.65% to Rs 2,352.10 at 13:55 IST on BSE on reports the company is now eyeing the assets being divested by Lafarge and Holcim in Europe and Brazil as part of their merger plans.

On BSE, so far 25,401 shares were traded in the counter, compared with an average volume of 16,568 shares in the past one quarter.

The stock hit a high of Rs 2,502 and a low of Rs 2,347.20 so far during the day. The stock hit a record high of Rs 2868 on 18 June 2014. The stock hit a 52-week low of Rs 1635 on 14 January 2014.

The stock had underperformed the market over the past one month till 14 October 2014, falling 6.57% compared with 2.63% fall in the Sensex. The scrip had, also underperformed the market in past one quarter, sliding 1.72% as against Sensex's 5.37% rise.

The large-cap cement company has an equity capital of Rs 274.40 crore. Face value per share is Rs 10.

As per reports, 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, report said. On 7 July 2014, Holcim and Lafarge announced a plan for comprehensive divestment in Brazil as part of their planned merger of equals to create LafargeHolcim.

UltraTech is seeking to expand its footprint in the overseas markets. UltraTech plans to increase its installed cement capacity from 62 million tonnes per annum (mtpa) to 70 mtpa by early 2016, report said.

As part of consolidation of businesses within the Group, Grasim Industries spun off its cement interests to merge it with UltraTech. Grasim owns 60.25% of UltraTech Cement as at 30 September 2014.

UltraTech Cement's consolidated net profit fell 6.1% to Rs 628.08 crore on 14.7% rise in total income to Rs 6247.33 crore in Q1 June 2014 over Q1 June 2013.

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