JK Lakshmi Cement shares rose 3% after it made additional investments in its subsidiary Udaipur Cement Works through subscription towards rights issue. With this, the company’s stake in its subsidiary has augmented to 75% from 72.54%.

Udaipur Cement Works Ltd (UCWL), a subsidiary, sold 19,45,08,912 equity shares to JK Lakshmi Cement for cash Rs 350.12 crore. Each share’s nominal value was Rs 4 and was offered at a premium of Rs 14 per share.
At 9:23 am, shares traded 1.5% higher at Rs 691.45 on the BSE.

Udaipur Cement Works is involved in the manufacturing of cement and value-added products.
The subsidiary will utilise the income to finance the expansion and development of its industrial plant.

The subsidiary company is working on an expansion project within its present premises. This project aims to upsurge the cement grinding capacity to 4.70 MTPA and launch a clinker production line of 1.50 MTPA. The estimated cost is Rs 1,650 crore, completed and operational by 2024.