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Shree Cement stock rises over 2% on plan to invest Rs 4,750 cr in Rajasthan

Shree Cement stock rises over 2% on plan to invest Rs 4,750 cr in Rajasthan

Shree Cement stock touched an intraday high of Rs 31,441.05, rising 2.6% on BSE

Shree Cement stock has risen after three days of fall Shree Cement stock has risen after three days of fall

Shree Cement share rose over 2% in early trade today after the Rajasthan-based firm said it would invest Rs 4,750 crore on three projects, including Rs 3,500 crore to set up an integrated cement plant at Nawalgarh Tehsil of the state.

Share of Shree Cement has gained after 3 days of consecutive fall. The stock touched an intraday high of Rs 31,441.05 rising 2.6% on BSE. Shree Cement share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The stock has gained 53.88% in one year and risen 28.61% since the beginning of this year. In a month, the share has climbed 16%.  Total 768 shares changed hands amounting to turnover of Rs 2.38 crore on BSE. Market cap of the firm rose to Rs 1.11 lakh crore.

The stock opened higher at Rs 30,855 against previous close of Rs 30,644 on BSE. The large cap stock hit a 52-week high of Rs 32,050 on April 9, 2021 and 52-week low of Rs 18,214 on September 24, 2020.

The company's board on Tuesday approved to invest Rs 500 crore to set up solar power plants at its cement units at various locations and Rs 750 crore to set up a clinker grinding unit in the Purulia district of West Bengal by its wholly-owned subsidiary Shree Cement East.

"The board of directors of the company has approved setting up of an integrated cement plant at village Gothra in Nawalgarh Tehsil of Rajasthan and solar power plants at various locations to meet the captive requirement of the cement plants of the company," said Shree Cement in a regulatory filing.

The new proposed plant would have a clinker capacity of 3.8 million tonnes per annum (MTPA) and would be ready by the quarter ending March 2024, Shree Cement said in the regulatory filing.

The project requires an investment of about Rs 3,500 crore, it added.

Over the mode of financing, the company said it would be done through a mix of "internal accruals and debt".

Besides, the board has also approved an additional investment of Rs 500 crore to set up solar power plants having a capacity of up to 106 megawatts (MW) to meet the captive power requirement of the company's cement plants at various locations. This project would be completed within the quarter ending September 2022, it added.

"The company has committed to maximising the use of clean energy into its operations. Setting up of the above solar power plants will enhance the proportion of clean energy usage in total energy consumption of the company," it said.