UltraTech Cement Shares Touch 52-Week High On Expansion Plan

On Friday, shares of UltraTech Cement Ltd rose 5% to a new 52-week high of Rs 5,199 after the Aditya Birla Group Cement Flagship Company announced an investment of Rs 5,477 crore towards 12.8 million tonnes per annum (MTPA) capacity expansion.

UltraTech Cement's board approved increasing capacity by 12.8 million tonnes per annum (MTPA) with a mix of brownfield and greenfield expansion. The additional capacity will be created in the fast-growing markets of the East, Central and North regions of India, the company said in its stock exchange filing.

"This expansion includes the existing approval for the cement plant at Pali in Rajasthan, in addition to its 6.7 MTPA capacity expansion currently underway in Uttar Pradesh, Odisha, Bihar and West Bengal, which has picked up pace and is expected to get commissioned by FY22, in a phased manner," it added.

The commercial production from the new capacities is expected to go on stream in a phased manner by fourth quarter of FY 2022-23.

"This capacity addition will not impact the ongoing deleveraging program which is on track to make UltraTech debt free by the time the expansion program is completed," the company said.