Shares of Ambuja Cements Ltd. traded 3.39 per cent up at Rs 452.0 in Wednesday’s early trade. in an otherwise weak market ahead of the closure of the open offer made by Adani Group
Ambuja Cements Share Price: Shares of Ambuja Cements Ltd. traded 3.39 per cent up at Rs 452.0 in Wednesday’s early trade. in an otherwise weak market ahead of the closure of the open offer made by Adani Group on Friday, September 9. The S&P BSE Sensex was down 0.53 per cent at 58,885 at 09:23 am.
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The stock’s 52-week high price stood at Rs 454.9 and the 52-week low price at Rs 274.0. In the past one month, the stock has outperformed the market by surging 17 per cent, as compared to less than 1 per cent gain in the S&P BSE Sensex. Trading volume on the counter stood at 473,096 shares, while it quoted a price-to-earnings ratio of 38.02, an EPS value of 11.92 and a price-to-book value of 2.96. In the Nifty50 pack, 16 stocks traded in the green, while 33 stocks were in the red.
Adani Group’s Open Offer
Adani family group’s Mauritius-based firm Endeavour Trade and Investment on August 26, 2022 launched its Rs 31,000-crore open offer to acquire 26 per cent additional stake from the public shareholders of Swiss firm Holcim’s two Indian listed entities Ambuja Cements and ACC.
As per the revised schedule submitted by ICICI Securities and Deutsche Equities India, managers to the open offer, the tendering of shares opened on August 26 and will end on Friday, September 9, 2022.
In May, the Adani Group had made an open offer at Rs 385 per share for Ambuja Cements and Rs 2,300 per share for ACC.
For Ambuja Cements, the group had made an open offer to the public shareholders to acquire up to 51.63 crore equity shares, representing 26 per cent of the expanded share capital, aggregating to Rs 19,879.57 crore.
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Meanwhile, for ACC Ltd, the group had offered to acquire up to 4.89 crore shares held by public shareholders, representing 26 per cent of the expanded share capital, aggregating to Rs 11,259.97 crore.
The open offer has been triggered following the execution of the share purchase agreement between the Adani Group and Holcim to acquire controlling stake in the latter’s businesses in India.
Ambuja Cement and ACC are among the most iconic building material brands in India, with a track record of leadership in sustainability and innovation. Their combined footprint includes 31 cement manufacturing sites and 78 ready-mix concrete plants with 10,700 people across India.
What Should Investors Do Now?
Santosh Meena, Head of Research, Swastika Investmart Ltd., said: “Signs of improvements are visible in the cement sector as the demand outlook remains buoyant and the inflation in key raw material prices has started cooling off. Further, the consolidation in the industry will be favorable for the larger players. Ambuja Cement has witnessed a strong performance rising ~60 per cent from its March 2022 low due to improved prospects in the cement sector and the acquisition of the company by Adani Group. Nevertheless, at current prices most of the positives have been priced in, thus we don’t recommend any fresh entry into the company at current levels.”
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