Ambuja Cements up 3%, hits new high in a weak market on fund raising plan
Shares of Ambuja Cements hit a new high of Rs 503 on the BSE as the stock gained 3.4 per cent in Wednesday’s intra-day trade despite overall market weakness. The spurt came after the company said its board will meet on Friday, September 16, 2022 to consider fund raising plan. In comparison, the S&P BSE Sensex was down 0.89 per cent at 60,033 points at 09:35 AM.
“A meeting of the board of directors of Ambuja Cements is scheduled to be held on September 16, 2022 inter-alia, to consider and evaluate proposal for raising of funds by way of issue of equity shares, convertibles and / or any other eligible securities, on a rights/preferential or any other permissible mode/ and/or combination thereof as may be considered appropriate,” the company said in an exchange filing on Tuesday after market hours.
The fund raising is subject to all such regulatory / statutory approvals as may be required, the company said.
In the past one week, the stock has gained 14 per cent, as against 1 per cent rise in the benchmark index. Further in the past one month, it has rallied 30 per cent, as compared to 0.73 per cent gain in the Sensex.
The Adani family’s open offer to acquire an additional 26 per cent stake in Ambuja Cements and ACC had closed on September 9, 2022. The mandatory open offers in cash were made after the Adani family acquired a 63 per cent stake in Ambuja Cements from Swiss cement major, Holcim. Ambuja Cements has a 54.53 per cent stake in ACC.
Meanwhile, Ambuja is targeting to commission 1.5mt cement grinding capacity in the North by June 203, and clinker/cement grinding capacities of 3mt/7mt in the East region by the second half of calendar year 2024 (H2CY24). Post this, its total capacity will increase to 40mt from 31.5mt currently. In addition, Ambuja plans to achieve 50mt capacity over the next few years through capacity expansion in the West and debottlenecking at various locations.
“The waste heat recovery systems (WHRS) projects at Marwar, Darlaghat and Bhatapara are on track and are expected to be commissioned in Q3CY22. The next phase of WHRS projects at Ambujanagar and Maratha is in full swing,” analysts at Emkay Global Financial services had said in their June quarter result update.