UltraTech's Rs 1,800-Crore Investment Plan Wipes Out Rs 55,000 Crore
UltraTech Cement Ltd.'s surprise plan to venture into the cable and wire industry caused the stock to hit an intraday low of 6.38% at Rs 10,264.4 apiece on Thursday.
This sharp decline led to lose as much as Rs 20,500 crore in market capitalisation in the trading session so far.
The announcement also put heavy pressure on cable and wire companies, with top players losing as much as Rs 35,500 crore in market capitalisation.
Key Shareholder Loss
Promoter and promoter group hold 60% shareholding in UltraTech Cement as of Dec. 31, 2024. By this metric, the fall in share price so far today indicates a loss of as much as Rs 12,300 crore for the company's promoters.
As per BSE, mutual funds hold a total of 12.26% stake in the company, indicating a loss of value of as much as Rs 2,500 crore.
Cable & Wire Companies Under Pressure
UltraTech's entry into the industry also impacted several listed players in the space like KEI Industries Ltd., Polycab India Ltd., RR Kabel Ltd., Havells India Ltd., Finolex Cables Ltd. These stocks fell to intraday lows in the range of 21% to 3%.
Polycab India lost a market cap of Rs 15,900 crore. The total market cap lost by top cable and wire listed players stood over Rs 35,500 crore.
Mutual Funds With The Most Exposure
The top three mutual funds who have the most exposure to counters like UltraTech Cement, KEI Industries, Polycab India, RR Kabel, Havells, Finolex Cables are Motilal Oswal, PGIM India and Canara Robeco.
Motilal Oswal has the highest exposure to the six companies at 3.2% of their entire asset under management.
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