Ultratech Cement rose 1.80% to Rs 9,535.65 after the company announced that its board has approved the purchase of a grinding unit from India Cements for Rs 315 crore.
The grinding unit, with an installed capacity of 1.1 million metric tonnes per annum (mtpa), along with a captive railway siding, is located at Parli, Maharashtra.
The acquisition, valued at Rs 315 crore, was formalized through an asset purchase agreement between UltraTech Cement and India Cements.
This purchase will help the company to strengthen its presence in the rapidly growing Maharashtra markets, said the firm.
After the acquisition, the cement major stated that it will expand the grinding capacity at Parli by 1.2 mtpa with an investment of Rs 166.4 crore.
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UltraTech will also expand capacity at its Dhule plant in Maharashtra by 1.8 mtpa with an investment of Rs 338 crore.
The brownfield expansions will be completed by FY26 with an investment of Rs 504.4 crore through internal accruals.
In a separate filing, the cement manufacturer added that it has received the National Company Law Tribunal (NCLT), Kolkata approval for the scheme of amalgamation of UltraTech Nathdwara Cement, a wholly-owned subsidiary of the company and its wholly-owned subsidiaries, Swiss Merchandise Infrastructure and Merit Plaza with itself. The merger has come into effect from April 20.
All assets and liabilities of the three subsidiaries will be transferred to UltraTech and the three companies will be dissolved without winding up, the company stated in the press release.
Subsequently, UltraTech Cement informed that it has received an order from the Assistant Commissioner, CGST & CX, Patna East, Bihar for demand of GST along with interest and penalty worth Rs 1.46 crore.
UltraTech Cement is the cement flagship company of the Aditya Birla Group. It is the third largest cement producer in the world, outside of China, with a consolidated Grey Cement capacity of 138.39 MTPA.
The company reported 67.03% jump in consolidated net profit to Rs 1,774.78 crore on 7.85% rise in revenue from operations to Rs 16,739.97 crore in Q3 FY24 over Q3 FY23.
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