Ambuja Cements surges on plans to invest Rs 1,800 crore for capacity expansion

Ambuja Cements Ltd. | Cement & Construction Materials | Construction & Infrastructure | BSE: 500425 | NSE: AMBUJACEM

15 Mar 2012 Evaluate

Ambuja Cements is currently trading at Rs. 169.60, up by 2.15 points or 1.28% from its previous closing of Rs. 167.45 on the BSE.

The scrip opened at Rs. 168.00 and has touched a high and low of Rs. 169.80 and Rs. 166.35 respectively. So far 27168 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 182.00 on 07-Feb-2012 and a 52 week low of Rs. 119.90 on 09-Aug-2011.

Last one week high and low of the scrip stood at Rs. 172.10 and Rs. 160.50 respectively. The current market cap of the company is Rs. 25881.03 crore.

The promoters holding in the company stood at 50.29% while Institutions and Non-Institutions held 38.63% and 8.75% respectively.

Ambuja Cements is likely to spend Rs 1,800 crore by December 2013 to spread out its production capacity. It intended to fund the project through internal accruals, as it had surplus cash of Rs 7,700 crore as of December last year.

The company aims to set up a 2.2-million-tonne clinkerisation unit at Nagaur in Rajasthan. The feasibility study for the project is completed and environmental clearance has been obtained.

The entity is likely to expand its footprint in the southern markets and has proposed to set up a new bulk cement terminal at Mangalore. The terminal will be operational by September. A new brownfield expansion project to enhance capacity at its Sankrail grinding unit in West Bengal has also been initiated.