Construction Industry News
Shares of India Cements rose 10 percent to ₹269 on Friday after their unconfirmed reports that UltraTech Cement has emerged as the prime candidate for the company's project in Madhya Pradesh.
Previously, India Cements reached the top circuit of the day at ₹270 against its previous close of ₹246.
The company's project in Madhya Pradesh with the limestone mine is estimated to be around ₹800 crore. The company previously planned to set up a 3 million tons per year integrated cement plant on 700 acres on the site.
India Cements was also in talks with JSW Cement, Birla Group and Adani Group for the sale of the cement plant, but has chosen UltraTech Cement as it offered a better deal, sources close to the development said.
The company planned to pay off its long-term debt with the proceeds from the sale. India Cements had a net debt of ₹3,039 crore at the end of March.
UltraTech stocks up UltraTech Cement, owned by the country's largest cement producer, Aditya Birla Group, has a capacity of 115 million tons per year and is expanding at 42 million tons per year across the country. It has a cash surplus of ₹5,290 crore at the end of June. Shares of UltraTech Cement rose 1% to ₹6,250 on Friday.
India Cements, one of the oldest Indian companies, was founded in 1946 by SNN Sankaralinga Iyer and TS Narayanaswami. The company set up its first cement factory in Sankarnagar (Talaiyuthu) in 1949.
From just a two-factory company with 1.3 million tons in 1989, India Cements has grown to a capacity of 15.5 million tons per year over the past two decades. It has eight integrated cement plants in Tamil Nadu, Telangana, Andhra Pradesh and Rajasthan and two grinding plants, one each in Tamil Nadu and Maharashtra.
India Cements through its wholly owned subsidiary Springway Mining and Nkja Mining purchased 184.53 hectares of limestone land in Pawai Tehsil, Panna district and 68.55 hectares of land to set up a cement factory at Gaisabad Tehsil, Damoh District in Madhya Pradesh. An environmental permit for the Pawai mines has been obtained and the process to obtain an environmental permit to set up a plant is underway, the company said in its latest annual report.
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