New Delhi, Feb 27 – UltraTech Cement shares took a sharp 5% hit on Thursday following the company announced a Rs 1,800 crore investment to establish a wires and cables manufacturing plant in Gujarat.
The stock closed at Rs 10,420.65 on the BSE, reflecting a 4.99% decline after tumbling 6.39% to Rs 10,266.60 during intra-day trading. At the NSE, it settled 4.68% lower at Rs 10,450. This downturn wiped out Rs 15,811.8 crore from the company’s market valuation, bringing it down to Rs 3,00,847.41 crore.
UltraTech Cement emerged as the biggest loser among Sensex and Nifty stocks. Trading remained closed on Wednesday due to Mahashivratri.
Expansion into Wires and Cables Segment
On Tuesday, UltraTech Cement, a part of the Aditya Birla Group, unveiled plans to diversify into the wires and cables market as part of its construction value chain expansion strategy. The company’s board has approved the proposal under its Building Products Division, aiming to position itself as a comprehensive building solutions provider.The Rs 1,800 crore plant will be located near Bharuch, Gujarat, and is expected to be operational by December 2026.
This move follows Aditya Birla Group’s foray into the decorative paints segment last year with the launch of Birla Opus.
The market’s adverse reaction suggests investor concerns over the diversification strategy, with uncertainty about how the new venture will impact UltraTech’s core cement business.
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