Ambuja Cement share price zooms 4% on reports of Adani stake sale

Ambuja Cements share: The share price of Ambuja Cements rose over 4 per cent on August 23 to hit a high of Rs 659.70 during early trade on Friday. The increase in the share price comes at the backdrop of reports that Adani Group offloaded the majority position in the company through a block deal.

Holderind Investments is an Adani Group entity reported to have divested about 69.96 million shares at a floor price of Rs 600 a piece, a 5 per cent discount from the closing price the previous day at Rs 633. This pegs the total value of stake that is being sold at about Rs 4200 crore.

Currently, Adani Group holds 70.33 per cent in Ambuja Cements that raises its stake from 50.90 per cent that it had recorded since October 2023. This was done through a subscription of warrants to the tune of Rs 15,000 crore, having been invested earlier this year, and Rs 5,000 crore done in October 2022.

Ambuja Cements had announced a fortnight back its buyout of Penna Cements in a deal of about Rs 10,422 crore, to expand capacity and market presence in the south. Besides boosting pan-India market share, this deal is further expected to increase capacity and market presence in the south. that Ambuja Cements announced the buyout of Penna Cements in a deal valued at about Rs 10,422 crore. This buy will increase further capacity and market presence of Ambuja in the south, and also drive pan-India market share.

In the deal, on August 23, nearly 6.8 crore shares representing 2.76 per cent of the company's equity were transacted at the floor price of Rs 625.50 apiece. The move, although long expected, follows a broader strategy of Adani Group to diversify its shareholder base and bring in long-term investors, infrastructure-asset focused.

The Ambuja Cements stock touched a 52-week high of Rs 706.85 on July 2, 2024, and rose nearly 37 per cent in one year.