Ambuja Cements share jump over 4% after multiple block deals

Adani family was likely to sell around 3 per cent stake in Ambuja Cements via block deals

Ambuja Cements shares rose as much as 4.2 per cent BSE on Friday, August 23. The stock soared after the counter saw multiple block deals during the market opening.

As per the data on BSE, around 0.406 million shares changed hands via multiple blockdeals till 9:50 AM. The shares of Ambuja Cements were up 2.01 per cent or Rs 12.7 at Rs 645.6 per share. The market capitalisation of the company at around the same time stood at Rs 1,59,401.04 crore.

As per reports, the billionaire Adani family was looking to sell around 3 per cent of their stake in India’s second-largest cement firm Ambuja Cements. The deal is estimated to fetch around $500 million to the family.

The sale of the shares of Ambuja Cements is part of the family’s plan to manage and balance their $125-billion-strong portfolio (including unlisted companies), accelerate investments across group companies, and induct long-term sovereign fund investors, who are looking to invest in India's growth story, banking sources said. READ MORE HERE

In April, Adani family completed the Ambuja warrant subscription and infused Rs 83,390 million which increased its stake in the company by 70.3 per cent.

The Adani group did not comment on the imminent block deals. Reports also suggest that the family may look at selling a small shareholding of between 0.5 per cent and 3 per cent in Adani Power.

Capacity expansion plans

Earlier in August, Ambuja Cements unveiled plans of setting up a cement grinding unit at Warisaliganj in Nawada district with an investment of Rs 1,600 crore.

"The project will be implemented in three phases with THE first phase of 2.4 MTPA at an investment of Rs 1,100 crore is targeted to be commissioned by December 2025. Adequate provisioning of land for future expansion is in place, which will be commissioned in due course at much lower capex," the company had said.

In a post Q1-FY25 results note, analysts at Elara Capital had maintained an 'Accumulate' rating on the stock with a target price of Rs 711 (Rs 729 earlier).

"We cut our EBITDA around 16 per cent for FY25E, around 7 per cent for FY26E and around 4 per cent for FY27 to factor in below-than-expected Q1 performance and lower prices. However, we remain positive on the long-term prospects. We believe completion of ongoing expansion projects and the integration of PCIL are key catalysts to bolster volume growth. Also, focus on cost saving measures augurs well for margin. Thus, we reiterate Accumulate with a lower TP of Rs 711 from Rs 729 based on 18x June 2026E EV/EBITDA," wrote Ravi Sodah, Saurabh Mitra and Bhavi Shah of Elara Capital in a recent note.