Comprehensive deals firm up Gujarat Ambuja Cements
Gujarat Ambuja Cements rose 1.2% to Rs 139, after two large block deals were executed in the counter at an average Rs 138.75, on BSE.
The deals with a turnover of Rs 694 crore constituted 3.6% (5 crore shares, 2.5 crore shares each) of its equity capital of Rs 272.02 crore (face value Rs 2 per share).
The details of the buyers and sellers were not immediately known. The market had probably got an inkling of the deal in advance if the surge in sharp price over the past few days ahead of the deal, is anything to go by. It has been observed over the past two years that normally a stock price rises ahead of a block deal involving FIIs, or mutual funds.
From Rs 119.30 on 2 November 2006, the stock surged 15% to Rs 137.25 by 15 November 2006. The BSE Sensex rose 378.25 points, or 2.8%, during this period to 13,469.37 from 13,091.12 on 2 November.
The company is seen benefiting from firm cement prices. At the beginning of this month, cement makers raised prices by Rs 5 per 50 kg bag in Maharashtra and Gujarat. After the price hike, the price range is between Rs 222 and Rs 230 per bag.
Gujarat Ambuja Cements (GACL) registered 6% growth in cement dispatches for October 2006, to 1.25 million tonnes from 1.18 million tonnes in October 2005. Production rose 8% to 1.26 million tones.
Gujarat Ambuja Cements reported 225% increase in net profit at Rs 244.66 crore (Rs 75.28 crore) for Q2 September 2006. Net income jumped 52%; from Rs 647.28 crore to Rs 984.14 crore.
At the time of announcing September 2006 quarterly results, the company had said that the merger of Ambuja Cement Eastern (ACEL) with Gujarat Ambuja will be completed by end November 2006.
The company, along with ACEL, has planned a total capital outlay of Rs 950 crore to augment cement capacity by setting up a clinker unit of 2.3 million tonnes in Chhattisgarh. It is also setting up three power plants of 81 Mw, altogether.
The deals with a turnover of Rs 694 crore constituted 3.6% (5 crore shares, 2.5 crore shares each) of its equity capital of Rs 272.02 crore (face value Rs 2 per share).
The details of the buyers and sellers were not immediately known. The market had probably got an inkling of the deal in advance if the surge in sharp price over the past few days ahead of the deal, is anything to go by. It has been observed over the past two years that normally a stock price rises ahead of a block deal involving FIIs, or mutual funds.
From Rs 119.30 on 2 November 2006, the stock surged 15% to Rs 137.25 by 15 November 2006. The BSE Sensex rose 378.25 points, or 2.8%, during this period to 13,469.37 from 13,091.12 on 2 November.
The company is seen benefiting from firm cement prices. At the beginning of this month, cement makers raised prices by Rs 5 per 50 kg bag in Maharashtra and Gujarat. After the price hike, the price range is between Rs 222 and Rs 230 per bag.
Gujarat Ambuja Cements (GACL) registered 6% growth in cement dispatches for October 2006, to 1.25 million tonnes from 1.18 million tonnes in October 2005. Production rose 8% to 1.26 million tones.
Gujarat Ambuja Cements reported 225% increase in net profit at Rs 244.66 crore (Rs 75.28 crore) for Q2 September 2006. Net income jumped 52%; from Rs 647.28 crore to Rs 984.14 crore.
At the time of announcing September 2006 quarterly results, the company had said that the merger of Ambuja Cement Eastern (ACEL) with Gujarat Ambuja will be completed by end November 2006.
The company, along with ACEL, has planned a total capital outlay of Rs 950 crore to augment cement capacity by setting up a clinker unit of 2.3 million tonnes in Chhattisgarh. It is also setting up three power plants of 81 Mw, altogether.
posted by SY at 4:40 PM
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