Shares of UltraTech Cement, India's top cement maker by capacity, fell about 6% to hit an eight-month low on Thursday as its plan to foray into the cables and wires business led to concerns over capital allocation and debt reduction.

UltraTech Cement Ltd. closed 16.72% short of its 52-week high of 12,143.90 rupees, which the company reached on December 16th.

UltraTech Cement's entry into the cables and wires sector with a Rs 1,800 crore investment triggered a sharp sell-off, with KEI Industries, Polycab, and Havells plunging up to 17 percent.

Shares of India's UltraTech Cement fell 5% to hit their lowest level in eight months on Thursday as analysts raised concerns over the top cement maker's plan to foray into the cables and wires business.

UltraTech Cement Ltd. closed 14.19% short of its 52-week high of 12,143.90 rupees, which the company achieved on December 16th.

UltraTech Cement had said that the entry through its building products division, is in line with the company’s strategy to strengthen its position as a comprehensive building solutions provider

UltraTech Cement , India's top cement maker by capacity, will spend 18 billion rupees ($206 million) to start up a wires and cables business, deepening its foothold in the construction materials business,

The company has stated that it will invest Rs 1,800 crore to set up a plant in Gujarat over the next two years as part of plans to expand its footprint in the construction value chain.

UltraTech Cement's board has approved a capital expenditure of Rs 1,800 crore over the next two years for this venture.

UltraTech Cement’s market valuation diminished by ₹15,811.8 crore to ₹3,00,847.41 crore. The large-cap stock emerged as the biggest laggard among the Sensex and Nifty companies.