Home Business Ambuja Cements hit a new high ahead of Adani Group's open offer
Ambuja Cements hit a new high ahead of Adani Group's open offer
Actions Ambuja Cements hit a record high of Rs 446.50, up 2 percent on the BSE in intraday trade on Wednesday in a weak market ahead of the close of an open offer made by Adani Group on Friday, September 9. The S&P BSE Sensex was down 0.53 percent at 58,885 at 09:23.
Shares of the cement company have breached their previous high of Rs 443 touched on September 8, 2021. The stock has outperformed the market in the past month, rising 17 percent compared to the S&P's rise of less than 1 percent. BSE Sensex. Meanwhile, shares in ACC traded nearly 3% higher at Rs 2,398.95 on the BSE. On November 15, 2021, the stock hit a 52-week high of Rs 2,587.95.
Mauritius-based family group Adani's Endeavor Trade and Investment has on August 26, 2022 launched a Rs 31,000 crore open offer to acquire an additional 26 per cent stake from public shareholders in two listed Indian entities of Swiss firm Holcim. Ambuja Cements and ACC.
According to the revised schedule provided by ICICI Securities and Deutsche Equities India, the managers of the open offer, trading in the shares opened on August 26 and will end on Friday, September 9, 2022. CLICK HERE FOR DETAILS
In May of this year, Holcim signed a binding agreement on Adani Group to acquire its India business, which includes a 63.11 percent stake in Ambuja Cement, which owns a 50.05 percent stake in ACC, as well as a 4.48 percent direct stake in ACC. The Adani Group made an open offer of Rs 385 per share Ambuja Cements and Rs 2,300 per share for ACC.
Ambuja Cement and ACC are among the most iconic building materials brands in India, with a track record of leadership in sustainability and innovation. Their total footprint includes 31 cement plants and 78 concrete plants employing 10,700 people across India.
Meanwhile, according to analysts at Emkay Global Financial Services, cement industry volumes are likely to grow at a low single-digit rate year-on-year and decline at a mid-single-digit rate in August 2022, given the accelerating monsoon, harvest season and limited sand mining in a number of states with heavy rains.
Operating costs are set to peak in the second quarter of fiscal 2023 and are expected to decline in subsequent quarters, with international petcoke prices falling about 40 percent to US$175 a tonne in the past four months. Factoring in the inventory backlog (45-90 days), CC ratio of 1.5x and petroleum coke usage (about 70 percent in the fuel mix), falling fuel prices are expected to provide savings of at least Rs 200/t from Q3, in our view , the brokerage firm said in a sector update.
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