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UltraTech Cement gains after CCI nod for Jaypee Cement unit acquisition

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Capital Market
Last Updated : Dec 24 2013 | 11:55 PM IST

UltraTech Cement rose 1.47% to Rs 1792.55 at 10:08 IST on BSE after the company said that the Competition Commission of India has cleared the company's acquisition of the cement unit of Jaypee Cement Corporation located in Gujarat.

The announcement was made after market hours on Monday, 23 December 2013.

Meanwhile, the S&P BSE Sensex was up 11.79 points or 0.06% at 21,112.82.

On BSE, so far 2,746 shares were traded in the counter as against average daily volume of shares in the past one quarter.

The stock hit a high of Rs 1,800 and a low of Rs 1,779 so far during the day. The stock had hit a 52-week high of Rs 2,066.25 on 20 May 2013. The stock had hit a 52-week low of Rs 1,404.95 on 29 August 2013.

The stock had underperformed the market over the past one month till 23 December 2013, declining 2.85% compared with the Sensex's 4.37% rise. The scrip had also underperformed the market in past one quarter, sliding 1.33% as against Sensex's 6.03% gain.

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The large-cap cement maker has equity capital of Rs 274.23 crore. Face value per share is Rs 10.

UltraTech Cement on Monday, 23 December 2013 said that the Competition Commission of India (CCI) has by an order dated 20 December 2013 (received by the company on 23 December 2013), passed under section 31(1) of the Competition Act, 2002 approved the proposed acquisition of Jaypee Cement Corporation (JCCL)'s 4.8 MTPA Gujarat cement plant. Further, court convened meetings of the equity shareholders, secured and unsecured creditors of the company will be held on 20 January 2014 seeking their approval to the Scheme of Arrangement, UltraTech Cement said.

It may be recalled that UltraTech Cement had on 11 September 2013 reached an agreement with Jaypee Cement Corporation (JCCL), a 100% owned subsidiary of Jaiprakash Associates, to sell its 4.8 million tonnes per annum (MTPA) Gujarat cement plant to UltraTech Cement for an enterprise value of Rs 3800 crore, besides the actual net working capital. The Gujarat cement project consists of an integrated cement plant at Kutch and a 2.4 MTPA cement grinding unit at Wanakbori.

UltraTech Cement's net profit fell 52% to Rs 264.11 crore on 4.2% decline in net sales to Rs 4502.10 crore in Q2 September 2013 over Q2 September 2012.

UltraTech Cement is a leading cement manufacturer in India.

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First Published: Dec 24 2013 | 10:06 AM IST

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