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ACC, Ambuja Cements build on merger buzz

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Capital Market
Last Updated : Jul 04 2013 | 1:30 PM IST

ACC (up 2.77% at Rs 1,239.25) and Ambuja Cements (up 1.83% at Rs 191.75) edged higher.

Meanwhile, the S&P BSE Sensex was up 218.35 points or 1.14% at 19,396.11.

ACC had outperformed the market over the past one month till 3 July 2013, sliding 1.5% compared with the Sensex's 2.21% fall. The scrip had also outperformed the market in past one quarter, jumping 3.99% as against Sensex's 2% rise.

Ambuja Cements had outperformed the market over the past one month till 3 July 2013, surging 5.31% compared with the Sensex's 2.21% fall. The scrip had also outperformed the market in past one quarter, jumping 9.96% as against Sensex's 2% rise.

As per reports, Holcim has roped in a global investment bank with a mandate of evaluating various options on how the operations of ACC and Ambuja Cements could be combined. Swiss cement maker Holcim holds 50.3% stake in ACC and 50.59% stake in Ambuja Cements (as per the shareholding pattern as on 31 March 2013). However, the reports added the exercise is at a preliminary stage and there is still no certainty about the shape of the eventual outcome.

Ambuja Cements' net profit jumped 56.3% to Rs 487.90 crore on 3.3% decline in net sales to Rs 2544.83 crore in Q1 March 2013 over Q1 March 2012.

Ambuja Cements is engaged in manufacturing and marketing cement and clinker for both domestic and exports markets.

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ACC's consolidated net profit jumped 189.2% to Rs 438.29 crore on 2.9% decline in net sales to Rs 2911.11 crore in Q1 March 2013 over Q1 March 2012.

ACC manufactures cement and ready mixed concrete.

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First Published: Jul 04 2013 | 12:14 PM IST

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