Ultra Tech CemCo makes damp debut

The Aditya Birla group-controlled Ultra Tech CemCo on Tuesday made a lacklustre debut on the bourses. The company, which was created by demerging the cement business of Larsen & Toubro where Grasim Industries acquired a majority stake, got listed at Rs 299 and weakened during the day to close at Rs 260.35.

Ultra Tech CemCo’s closing price on its first day of trading is at a 24% discount to Grasim Industries’ open offer price of Rs 342.6. Grasim Industries, which made an open offer for Ultra Tech CemCo as per the scheme of arrangement, currently owns a 51.1% stake in its subsidiary, in which it formally took control last month.  Analysts said that CemCo’s modest debut on the bourses was expected, given its weak financial performance.