Ultratech Cement builds well

Ultratech Cement is building up well today. The stock, which had closed yesterday at Rs.2539.60, opened today morning at Rs.2619.70, its current intra day high point. It continues to hover around the same levels, up over 3% or by Rs.77-78.

The stock is up after its Board approved acquisition of two plants from Jaiprakash Associates in Madhya Pradesh for an enterprise value of Rs 5,400 crore - Bela unit which has 2.1 million tonnes per annum (mtpa) clinker and 2.6 mtpa cement grinding capacity. The second unit is Sidhi which has 3.1 mtpa clinker and 2.3 mtpa cement grinding capacity.

Following this acquisition, Ultratech’s cement capacity in India will rise to 65 mtpa from the current 60 mtpa. Once all its ongoing expansions are completed the capacity to rise to 71 mtpa by 2016.