Life high for ACC anticipating stake hike by promoter
ACC had hit a lifetime high of Rs 1,093.80, as Holcim hiked stake in Gujarat Ambuja Cements, breeding optimism of an encore in ACC too.
It, however, closed up just 6%, at Rs 1,079. As many as 16.3 lakh shares changed hands in the counter on BSE.
Holcim today bought 5 crore shares of Gujarat Ambuja Cements from the founders at Rs 138.75 per share through block deals, which were routed through BSE. The deal price was over 30% higher than Rs 105 per share, including a non-compete fee that Holcim paid founders in January this year to buy 14.8% in Gujarat Ambuja Cements.
Holcim holds 35% in ACC.
The latest deal also showed that the consolidation in the cement sector will gather pace. The sharply growing Indian cement industry - second only to China - has attracted many foreign cement majors, which see great demand for the commodity in a country hungry for infrastructure.
Two other cement makers have already entered the Indian markets. Lafarge entered India by buying Tata Steel’s cement business. A few months back, HeidelbergCement bought south India-based Mysore Cement.
Analysts feel that a consolidation in the Indian cement industry is inevitable, the sector being highly fragmented. The top-five producers account for 55% of India's total production (125 million tonne a year), while a large number of small producers make up for the balance.
It, however, closed up just 6%, at Rs 1,079. As many as 16.3 lakh shares changed hands in the counter on BSE.
Holcim today bought 5 crore shares of Gujarat Ambuja Cements from the founders at Rs 138.75 per share through block deals, which were routed through BSE. The deal price was over 30% higher than Rs 105 per share, including a non-compete fee that Holcim paid founders in January this year to buy 14.8% in Gujarat Ambuja Cements.
Holcim holds 35% in ACC.
The latest deal also showed that the consolidation in the cement sector will gather pace. The sharply growing Indian cement industry - second only to China - has attracted many foreign cement majors, which see great demand for the commodity in a country hungry for infrastructure.
Two other cement makers have already entered the Indian markets. Lafarge entered India by buying Tata Steel’s cement business. A few months back, HeidelbergCement bought south India-based Mysore Cement.
Analysts feel that a consolidation in the Indian cement industry is inevitable, the sector being highly fragmented. The top-five producers account for 55% of India's total production (125 million tonne a year), while a large number of small producers make up for the balance.
posted by SY at 4:50 PM
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