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Shares of UltraTech Cement rose 2 per cent on Monday after the Aditya Birla group firm said it will set up a new plant in Rajasthan with a proposed investment of Rs 1,850 crore.
Following the uptick on the counter, market capitalisation of the company improved by Rs 2,477 crore to Rs 1,16,519.84 crore.
The plant, which will have a capacity of 3.5 million tonnes per annum (mtpa), is expected to commence commercial production by June 2020.
Following the announcement on December 9, shares of the company opened on a bullish note at Rs 4,198 and surged further to touch an intra-day high of Rs 4,253.90, up 2.40 per cent over their previous close. The stock ended higher at Rs 4,244, up 2.17 per cent on the BSE.
On NSE, the stock opened at Rs 4,189, then touched an intra-day high of Rs 4,257.95 and finally ended at Rs 4,230, up 1.55 per cent.
With this expansion UltraTech will have a foot print across the country with 50 plant locations.
Meanwhile, UltraTech also informed that its board has also approved a proposal “to increase the investment limits by RPFI, including FIIs, from the existing limit of 30 per cent of the paid-up equity share capital to up to 40 per cent of the paid-up equity share capital of the company“.
This would make availability of more space for registered foreign portfolio investors (RPFI) to invest into the equity of the company.
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