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ACC, Ambuja Cements gains on renewing TKH agreement with parent

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Capital Market
Last Updated : Dec 24 2020 | 11:04 AM IST

Shares of ACC and Ambuja Cements were up 4% to 5% after the companies announced the renewal of technical know-how fees (TKH) to parent at 1% of net sales for the next two years.

ACC rose 4.77% to Rs 1655 while Ambuja Cements jumped 6.24% to Rs 252.15.

Meanwhile, the S&P BSE Sensex rose 395.42 points or 0.85% to 46,839.60.

In separate regulatory filings made after market hours yesterday, ACC and Ambuja Cements said that their respective boards had approved the renewal of the existing technology and know-how agreement (TKH agreement) with Holcim Technology (HTL) under which they pay TKH fees at 1% of net sales each year, to HTL, for a period of 2 years with effect from 1 January 2021, i.e., on the same terms of the existing TKH Agreement.

HTL held 4.48% stake in ACC while its stake in Ambuja Cements was 63.27% as on 30 September 2020.

On a year-to-date (YTD) basis, the benchmark S&P BSE Sensex has added 13.43% while ACC and Ambuja Cements have gained 13.39% and 27.66%, respectively.

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First Published: Dec 24 2020 | 10:06 AM IST

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