Wires and cables sector: With its major announcement, UltraTech Cement's stock drops 6%, and its Mcap drops more than ₹15,800 crore.
Wires and cables sector: The major announcement from UltraTech Cement lowers the stock by 6% and lowers the Mcap by more than ₹15,800 crore.
Ankush Pandey
Ultratech Cement's stock fell 5% on Thursday following the company's announcement that it would be investing ₹1,800 crore to establish a plant in Gujarat and enter the wires and cables market.
The stock fell 4.99% to close at ₹10,420.65 on the BSE. It fell 6.39 percent to ₹10,266.60 intraday.
At ₹10,450, it fell 4.68 percent at the NSE.
The market value of the company dropped by ₹15,811.8 crore to ₹3,00,847.41 crore.
The stock turned out to be the largest underperformer among the Nifty and Sensex companies.
Ultratech Cement announced on Tuesday that it will be expanding its presence in the construction value chain by entering the wires and cables segment and investing ₹1,800 crore to establish a Gujarati plant during the following two years.
UltraTech Cement said that the plant will be established in Gujarat, close to Bharuch and should be put into service by December 2026.
Through its Building Products Division, the Aditya Birla Group company's board approved the plan on Tuesday to increase its presence in the construction value chain.
The "company’s strategy to strengthen its position as a comprehensive Building Solutions provider," according to UltraTech, is what this moves towards.
The Aditya Birla Group introduced the Birla Opus brand last year, marking their entry into the decorative paints market.
Wires and cables sector: With its major announcement, UltraTech Cement's stock drops 6%, and its Mcap drops more than ₹15,800 crore.
Wires and cables sector: The major announcement from UltraTech Cement lowers the stock by 6% and lowers the Mcap by more than ₹15,800 crore.
Top Cables & Wire Players' M-Cap Loss Today
*value of holding is for KEI Industries, Polycab, RR Kabel, UltraTech, Havells, Finolex Cables
