JK Lakshmi Cement gains 3% on additional investment in subsidiary

The subsidiary will utilise the proceeds for part financing the expansion and development of its manufacturing plant, said JK Lakshmi Cement in an exchange filing.

Shares of JK Lakshmi Cement rose around 3 percent on July 17 after the company said it has made additional investment in its subsidiary Udaipur Cement Works by way of subscription towards rights issue. With this, the company’s stake in its subsidiary has increased to 75 percent from 72.54 percent.

Udaipur Cement Works Ltd. (UCWL), a subsidiary, sold 19,45,08,912 equity shares to JK Lakhsmi Cement for Rs 350.12 crore in cash. Each share had a nominal value of Rs 4 and was offered at a premium of Rs 14 per share, the company said in an exchange filing.

At 9:23 am, shares of the company were trading 1.5 percent higher at Rs 691.45 on the BSE.

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Udaipur Cement Works is engaged in the manufacturing of cement and value-added products.

The subsidiary will utilise the proceeds for part financing the expansion and development of its manufacturing plant, said JK Lakshmi Cement in an exchange filing.

The subsidiary company is currently working on an expansion project within its current premises. This project aims to increase the cement grinding capacity to 4.70 MTPA and establish an additional clinker production line of 1.50 MTPA. The estimated cost of this project is Rs 1,650 crore. The expansion is scheduled to be completed and operational by 2024.