UltraTech to give USD 55 mn corporate guarantee for associate UHG Holdings

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ULTRACEMCO · price

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Price reactionminutes from the announcement price · days from the prior close

-2.4%Reaction day

₹10907.00

prior close

₹10686.00

announcement price

In-mkt

timing

Nifty 100market-1.0%-1.4% vs market

Cement & Cement Products peers, median of 35sector-1.4%-1.0% vs sector

On the reaction day the stock moved 1.4 pts less than Nifty 100 and 1.0 pts less than its Cement & Cement Products peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.

Minutes after the announcementfrom the announcement price · no benchmark

Stock

+0.1

10m

+0.7

15m

-0.1

30m

-0.8

Sessions after the filingfrom the prior close

StockMarketvs marketSectorvs sector

Reaction day

-2.4-1.0-1.4-1.4-1.0

Next day

-0.5-1.5+1.0-2.7+2.1

+0.5-2.1+2.5-3.6+4.0

+1.3-2.8+4.1-5.6+6.9

+2.5-2.1+4.6-4.4+6.9

+2.2-1.8+4.1-3.2+5.5

+2.5-1.0+3.4-5.3+7.8

15d

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UpDownMarket · Nifty 100Sector · Cement & Cement Products peers, median of 35Pending

Minute windows have no benchmark: there is no intraday index history to compare against.

AI summary

UltraTech Cement's board approved issuing an irrevocable, unconditional corporate guarantee of up to USD 55 million for UHG Holdings IFSC Private Limited, an associate company, to help it raise a loan for business purposes. Grasim Industries (promoter) holds 9 percent and Hindalco Industries (promoter group) holds 50 percent in UHG Holdings. The deal is at arm's length and the guarantee creates a contingent liability for UltraTech to that extent, with no other material impact stated.

Likely market impact

Contingent liability of up to USD 55 million for associate UHG Holdings. Limited direct impact on UltraTech's own finances but worth monitoring the associate.