By Amit - September 19, 2022
18 minutes ago
The shares of cement company Ambuja and ACC are seeing a rise on the first day of the trading week i.e. on Monday (September 19). Ambuja’s stock has come down to around Rs 560 with a gain of Rs 45, or about 9%. At the same time, the share of ACC is trading at Rs 2,665, up by Rs 53 i.e. 2.05%.
Shares of Ambuja-ACC ran out after the acquisition of Adani
The shares of these two companies have risen since the acquisition of Ambuja and ACC by Gautam Adani, Asia’s richest man. Gautam Adani signed a deal with Ambuja and ACC 5 months ago in May. Since this deal, the shares of both the companies have seen a steady rise.
Ambuja gave 85.25% return in last 6 months
Ambuja has given 85.25% return to its investors and ACC 28.42% in the last six months. The stock of Ambuja Cement has touched its new 52-week high during trading today. With this the stock has crossed its previous high on 16 September. Both Ambuja and ACC stocks came into limelight after Adani Group’s tie-up with Holcim.
Ambuja-ACC acquired for $6.5 billion
Gautam Adani completed the acquisition of Ambuja and ACC 2 days ago (September 16). Adani Group did this takeover of Ambuja and ACC Cement for $ 6.5 billion i.e. 51.79 thousand crores. With this takeover, Adani Group has become the second largest cement manufacturer in the country. Aditya Birla Group’s UltraTech Cement is at number one in terms of cement production.
Deal completed after regulatory approval
The deal was completed after regulatory approval. The open offer price for Ambuja Cement was Rs 385 per share and for ACC it was Rs 2,300 per share. Holcim’s stake in Ambuja Cement, ACC and the open offer consideration was valued at $6.5 billion. This deal by Adani Group is the biggest acquisition in India’s infra and materials space.
Group will raise 20 thousand crores through warrants
The board of Ambuja Cements had also approved convertible warrants for preferential allotment to the promoter entity of Adani Group. Through this, the group will raise an additional 20 thousand crore rupees. The group will use this fund to expand its cement production capacity to meet its goal of becoming India’s largest cement company by 2030.
Karan Adani appointed as Chairman of ACC
Gautam Adani’s elder son Karan Adani will take charge of the cement business. According to sources, Gautam Adani has become the chairman of Ambuja Cement. At the same time, 35-year-old Karan Adani has been made its non-executive director. Apart from this, Karan has also been appointed as the chairman and non-executive director of ACC. Let us inform that Karan is currently the CEO of Adani Ports and Special Economic Zone Limited (APSEZ).
Holcim owned ACC-Ambuja
ACC i.e. Associated Cement Companies and Ambuja were owned by Holcim Company. It is a Switzerland-based building materials company. ACC was started on 1 August 1936 from Mumbai. At that time many groups together had laid its foundation. Ambuja Cement was founded in 1983 by Narottam Sekhsaria and Suresh Neotia.
Holcim will cover 17 years of business
Holcim Company started business in India 17 years ago. It is considered to be the largest cement company in the world. After this deal, now the company will wrap up its business from India. The Holcim Group had stake in two cement companies Ambuja Cement and ACC Limited in the country.
Holcim had 63.19% stake in Ambuja Cements through Holderind Investments Ltd. and 54.53% in ACC (of which 50.05% was through Ambuja Cements). Now Adani Group has bought Holcim’s entire stake in Ambuja Cement and ACC.
Excellent manufacturing and supply chain infrastructure
Ambuja Cements and ACC currently have a combined installed production capacity of 70 MTPA (Enum per Million Tonnes). Both the companies are amongst the strongest brands in India with excellent manufacturing and supply chain infrastructure. They have 23 cement plants, 14 grinding stations, 80 ready-mix concrete plants and more than 50,000 channel partners across India. At the same time, Ultra Tech Cement of Aditya Birla Group is the largest company in the country. It has an annual capacity of 119 million metric tons.