ACC Ambuja Cements

Biocon, Gland Pharma, Mphasis and Bandhan Bank may move out, says note by Nuvama Alternative & Quantitative Research

Ambuja Cements, now controlled by billionaire Gautam Adani-led Adani Group, on Wednesday said it has pledged 50.5 per cent shareholding in its subsidiary ACC Ltd as "collateral for loans taken by the company". The company pledged its total 9.39 crore shares of ACC Ltd on September 26, 2022, said a regulatory filing by Ambuja Cements. Adani has acquired the two firms -- Ambuja and ACC -- through a Mauritius-based SPV Endeavour Trade and Investment Ltd (ETIL), which is owned by Xcent Trade and Investment Ltd (XTIL). "The shares of Endeavour Trade and Investment Ltd, Xcent Trade and Investment Ltd and Holderind Investments shall also be charged for such loans," it added. Last week, Adani Group had said it had pledged its entire stake worth USD 13 billion in Ambuja Cements and ACC, days after completing its USD 6.5-billion acquisition of the two companies. Adani group has encumbered its 63.15 per cent stake in Ambuja Cements and 56.7 per cent stake in ACC (of which 50 per cent is held

The Adani group holds 63.15 per cent in Ambuja Cements and 56.69 per cent in ACC (of which 50.05 per cent is held through Ambuja Cements)

The response was poor as the current market price is far above the open offer price, bankers said

Adani group on Friday 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 ACC Ltd and Ambuja Cements. In May this year, the Adani Group had announced that it had clinched a deal to acquire a controlling stake in Holcim Ltd's businesses in India for USD 10.5 billion. Markets regulator Sebi granted approval for the open offer last week. The open offer is estimated at over Rs 31,000 crore if fully subscribed. In two separate regulatory filings, Ambuja Cements and ACC have submitted their letter of offers for the open offer, launched by the Adani family group's Mauritius-based firm Endeavour Trade and Investment. As per the revised schedule submitted by ICICI Securities and Deutsche Equities India, managers to the open offer, the tendering of shares opens from August 26 and will end on September 9, 2022. In May, the Adani Group had made an open offer at Rs 385 per share for Ambuj

On BSE, the scrip closed 5.87 per cent lower at Rs 338.3; Intra-day, it was trading at Rs 337.2

Over the medium-term, the companies expect all India cement demand to grow at around 5-6 per cent on an average, mainly on the back of rural housing, followed by infrastructure segment

The robust Q3 operating performance that was ahead of expectations is driving upgrades in earnings and target prices

The agreement is for supply of cement, clinker and raw materials such as fuels, fly ash, slag and gypsum

India Cements, UltraTech Cement and Shree Cement were up in the range of 1% to 2% as compared to 0.06% rise in the S&P BSE Sensex at 01:35 PM.

ACC hit a 52-week high of Rs 1,754, up 6%, while Ambuja Cements up 8% to Rs 266 in intra-day trade