Share price of UltraTech Cement fell in early trade today after the firm said it completed divestment process of controlling stake in Chinese firm Shandong Binani Rongan Cement has been completed upon receipt of all regulatory approvals.
Share price of UltraTech Cement fell up to 3.7% to Rs 4,001 compared to previous close of Rs 4,154.90 on BSE. Ultratech Cement is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. Later, the share pared losses to close 0.79% or Rs 32.85 lower at Rs 4,122 on BSE.
Total 8,778 shares changed hands amounting to turnover of Rs 3.64 crore. Market cap of the firm stood at Rs 1.19 lakh crore.
The large cap stock has lost 1.54% in the last 2 days.
The share has fallen 5.52% in one year and risen 1.39% since the beginning of this year.
Ultratech Cement in a communication to bourses said, "We hereby confirm that the divestment process of Shandong Binani Rongan Cement Co. Ltd. has been completed upon receipt of all regulatory approvals."
Shandong Binani Rongan Cement was founded as a joint venture between India's Binani Cement and Rizhao Rongan Construction Materials Co in 2007 with a 70:30 equity structure. It has a 2 million tonne per annum clinker and a 0.3 million tonne per annum cement capacity in the Shandong province. The joint venture became part of UltraTech's portfolio after it acquired Binani Cement in November 2018 for Rs 7,950 crore.
On July 7, Ultratech Cement said, "Krishna Holdings Pte. Ltd, ("Krishna"), incorporated in Singapore and a subsidiary of the Company's wholly-owned subsidiary UltraTech Nathdwara Cement Ltd. has informed that it has entered into a binding agreement for divesting its entire equity shareholding of 92.5 percent in Shandong Binani Rongan Cement Co. Ltd," the company said in a statement to the Bombay Stock Exchange."
On July 28, the cement maker firm reported a 36.4 per cent year-on-year (YoY) fall in net profit for the quarter ended June. Net profit at Rs 806 crore came in above analysts' estimates. The firm logged net profit of Rs 1,267 crore in the corresponding quarter of last year.
The stock became the top gainer on Sensex and Nifty in the same session. Share price of UltraTech Cement closed 7.17% or Rs 276.65 higher at Rs 4,135 compared to previous close of Rs 3,859 on BSE.
During the day, the stock gained 9.08% to Rs 4,209.