Ambuja Cements Block Deal: Several block deals involving a total of Rs 4,251 crore worth of stake in Ambuja Cements took place on the exchanges on August 23 with the promoter group entity Holderind Investments being the likely sellers.
The cement stock, which is up about 22 per cent so far in the year, jumped 4 per cent to the day’s high of Rs 659.70 in the opening session following the large deal.
According to a term sheet issued by the banker, Holderind Investments, an Adani Group entity, was looking to sell 69.96 million shares at a floor price of Rs 600 per share, a discount of 5 per cent to Thursday’s closing price of Rs 633.
The Adani Group currently holds a 70.33 per cent stake in Ambuja Cements, with Holderind Investments holding a 50.90 per cent stake.
The transaction is likely part of a strategic group portfolio management initiative designed to diversify the shareholder base and attract long-only investors, particularly those with a focus on infrastructure assets.
The promoter group collectively holds a 70.33 per cent stake in Ambuja Cements, with Holderind Investments Ltd making for 50.90 per cent of that stake.
Since October 2023, the Adani Group has invested about Rs 20,000 crore in the company through subscription to warrants, increasing their total stake to 70.33%. Of this, Rs 15,000 crore was invested earlier this year while Rs 5,000 crore was invested in October 2022.
Earlier in the month, Ambuja had announced the acquisition of Hyderabad-based Penna Cement at an enterprise value of Rs 10,422 crore, adding to its capacity and market share in southern India.
With the purchase of Penna, Adani Cement is set to fast-track capacity, and also expects to improve its south India market share by 8 per cent to 15 per cent, and pan India market share to improve by 2 per cent. The Adani Group is said to be planning to consolidate all its cement companies under one head in the medium term.
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