Ambuja Cements share price: Shares of Ambuja Cements Ltd. were traded 3.39 percent higher against Rs 452.0 in Wednesday’s early trading. in an otherwise weak market ahead of the close of Adani Group’s open offer on Friday, September 9. The S&P BSE Sensex fell 0.53% to 58,885 at 9:23 AM.
The stock’s 52-week high was Rs 454.9 and its 52-week low was Rs 274.0. Over the past month, the stock outperformed the market with a 17 percent gain, compared to a less than 1 percent gain in the S&P BSE Sensex. The trading volume on the counter was 473,096 shares, while it recorded 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 package, 16 shares traded in the green, while 33 shares were in the red.
Open offer from Adani Group
The Mauritius-based company Endeavor Trade and Investment of the Adani family group launched its open offer of Rs 31,000 crore on August 26, 2022 to acquire an additional 26 percent stake from the public shareholders of the two Indian listed entities Ambuja Cements and ACC of the Swiss Holcim.
Under the revised schedule submitted by ICICI Securities and Deutsche Equities India, managers of the open offer, the offering of shares opened on August 26 and will end on Friday, September 9, 2022.
In May, the Adani Group had made an open offer of 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 shares, representing 26 percent of the expanded share capital, totaling Rs 19,879.57 crore.
Meanwhile, the group had offered for ACC Ltd to acquire up to 4.89 crore shares held by public shareholders, representing 26 percent of the expanded share capital, together worth Rs 11,259.97 crore.
The open offer came about following the execution of the share purchase agreement between the Adani Group and Holcim to acquire a majority stake in the latter’s businesses in India.
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 combined footprint includes 31 cement plants and 78 ready-mix concrete plants employing 10,700 people across India.
What should investors do now?
Santosh Meena, Head of Research, Swastika Investmart Ltd., said: “There are signs of improvement in the cement sector as demand prospects remain favorable and inflation in key commodity prices begins to cool. Furthermore, industry consolidation will be favorable Ambuja Cement has witnessed strong performance up ~60 percent from its March 2022 low, thanks to improved prospects in the cement sector and the acquisition of the company by Adani Group. current prices have priced in most of the positives, so we don’t recommend new entry into the company at current levels.”
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