Shares of Ambuja Cements
are trading ~2% higher after the board approved additional annual clinker capacity worth Rs960cr.
Initially in February 2018, the Board of Directors had approved an initial investment of Rs1,390cr for the first phase of the Greenfield Clinkerisation project of annual capacity of 1.71mn tonnes at Marwar Mundwa in the State of Rajasthan.
The board of directors of the company at its meeting has approved an additional annual clinker capacity of 1.4mn tonnes (taking the total clinker capacity to 3.1mn tonnes), additional cement grinding capacity of 1.8mn tonnes, and captive power plan & waste heat recovery system at Marwar Mundwa at an additional estimated cost of Rs960cr, taking the total investment to Rs2,350cr.
The above projects are proposed to be funded through internal accruals. With this expansion, the company's total cement capacity will increase to 31.5mn tonnes, and this project will allow the company to strengthen its market presence.
Ambuja Cements Ltd is currently trading at Rs216 up by Rs3.6 or 1.69% from its previous closing of Rs212.40 on the BSE.
The scrip opened at Rs212.90 and has touched a high and low of Rs218.35 and Rs212.90 respectively.