Ambuja Cements hits over 3-month high; rallies 29% thus far in April

Shares of Ambuja Cements continued their upward march, hitting an over three-month high of Rs 387.45, up 3 per cent on the BSE in Monday’s intra-day trade in an otherwise weak market. The stock traded at its highest level since January 14, 2022. The S&P BSE Sensex was down 0.92 per cent at 56,669 at 10:34 am. Thus far in the month of April, the stock of cement company has rallied 29 per cent on reports that the company’s foreign promoter, Holcim Ltd., the world’s biggest cement maker, is considering a potential sale of businesses in India including Ambuja Cements. The stock of Ambuja Cements had hit a 52-week high of Rs 442.95 on September 8, 2021. In comparison, the S&P BSE Sensex was down 3 per cent, while ACC was up 7 per cent during the same period. The Swiss giant is gauging interest in its controlling stake in Ambuja Cements. Deliberations are in the early stages and may not lead to a transaction, the Bloomberg reported on April 14, quoting people familiar with the matter. CLICK HERE FOR FULL REPORT Neither Holcim nor its Indian subsidiaries Ambuja and ACC have offered any comments on the same. Holcim entered India in 2005 through acquisitions of Ambuja and ACC. Currently, it owns 63.19 per cent in Ambuja and 5 per cent directly in ACC.

Ambuja owns 50 per cent in its subsidiary ACC. On a consolidated basis, these two entities have 66mn MT cement capacity, accounting for around 12/15 per cent of capacity and sales market share. This makes Holcim the second-largest cement group in India. Holcim recently accelerated focus to expand the revenue share of green and sustainable solutions & products (S&P), at the expense of its cement business. Thus, it has been selling off cement assets in various geographies and acquiring assets in the US and Europe to augment its S&P revenue. This adds credence to the market chatter of its India exit, as that can fast-track Holcim’s 2025 goals, analysts HDFC Securities said in its cement sector update.

Bharat Petroleum tumbles 6%

Shares of Bharat Petroleum Corporation (BPCL) declined over 6 per cent to Rs 369.75 on the BSE on Monday following reports that the government may revisit the company’s privatisation plan, including revision of the terms of sale. The transition towards green and renewable fuel has made privatisation difficult in existing terms, a PTI report said. The government, which currently holds 52.98 per cent stake in the OMC, is planning to sell its entire stake for which three expressions of interest have been received.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor