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ACC, Ambuja Cements dip on royalty payment concerns

The board of ACC approved for paying 1% of the net annual sales of the firm as technology and know-how fees to Switzerland's Holcim with effect from January 1, 2013.

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SI Reporter Mumbai
Last Updated : Jan 24 2013 | 2:10 AM IST

ACC and Ambuja Cements, both Holcim Group companies, have dipped almost 4% each in late noon deals after ACC said that its board has approved for payment of 1% of the net annual sales of the firm as technology and know-how fees to Switzerland's Holcim with effect from January 1, 2013.

“The board of directors of the company at its meeting held on December 13, 2012, approved the payment of technology and know-how fees to Holcim Limited at the rate of 1% of the net annual sales of the company with effect from January 01, 2013,” ACC said in a statement.

The proposal will be presented to the members of the company for their consideration at the next Annual General Meeting of the company, it added.

As on 30 September 2012, Holcim held 50.67% in Ambuja Cements and 50.30% in ACC, the BSE data shows.

Among the individual stocks, Ambuja Cements is trading lower by 2% at Rs 206 on the BSE. The stock hit a low of Rs 203 and high of Rs 214 so far.

ACC too, down 2.1% at Rs 1,391 after hitting high of Rs 1,444 in intra-day trades. The stock hit a low of Rs 1,368 on the BSE.

 

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First Published: Dec 13 2012 | 2:52 PM IST

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