The cement major on Tuesday (7 July) said its subsidiary Krishna Holdings will sell its 92.5% holding in Shandong Binani Rongan Cement Company for enterprise value of approximately $120 million.
Krishna Holdings, incorporated in Singapore and a subsidiary of the Ultratech Cement's wholly-owned arm, UltraTech Nathdwara Cement, has entered into a binding agreement for divesting its entire equity shareholding of 92.5% stake in China-based Shandong Binani Rongan Cement Co.
In terms of the agreement, Krishna Holdings will divest its entire shareholding at an enterprise value of RMB 845 million (+/-) working capital adjustments on closing, equivalent of approximately $120 million, subject to customary closing conditions and regulatory approvals in compliance with the local laws.
Shares of Ultratech Cement declined 2.08% to Rs 3,850 on BSE. The stock traded in the range of Rs 3,828 to Rs 3,947.10 so far.
On the technical front, Ultratech Cement's RSI (relative strength index) stood at 52.933. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
The stock was trading in between its 50-day moving average (DMA) placed at Rs 3,678.17, with will act as a support in the near term and its 200-day moving average (DMA) placed at Rs 3,974.02, would act as a resistance in the upcoming trade.
Ultratech Cement's consolidated net profit surged 198.40% to Rs 3,239.39 crore on 13.1% decline in net sales to Rs 10,745.62 crore in Q4 March 2020 over Q4 March 2019.
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UltraTech Cement manufactures a range of products that cater to construction needs from foundation to finish, including Ordinary Portland Cement (OPC), Portland Blast Furnace Slag Cement (PSC), Portland Pozzolana Cement (PPC), white cement including white cement-based products and ready-mix concrete.
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