UltraTech Cement stock price jumps 2% on acquiring India Cements unit

By Aditya Bhagchandani Published on April 22, 2024, 10:33 IST

Shares of UltraTech Cement surged 2% after India’s largest cement producer entered into an agreement with India Cements to acquire a 1.1 million tonne per annum (MTPA) grinding unit in Parli, Maharashtra, for Rs 315 crore.

The Aditya Birla Group company will also invest Rs 504 crore to expand its total capacity by 3 MTPA, including at the Parli facility.

As of 10:20 am, the shares were trading 2.06% higher at ₹9,556.95 on NSE.

The acquisition of the Parli facility, done through an asset purchase agreement, includes a captive railway siding. This deal will help strengthen the company’s presence in the Maharashtra market.

Following the acquisition, UltraTech Cement will invest Rs 166.4 crore at the Parli unit to expand its capacity by 1.2 MTPA. Additionally, it will invest Rs 338 crore to expand the capacity by 1.8 MTPA at its Dhule plant in Maharashtra.

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Aditya Bhagchandani

Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.