Shares of Ambuja Cement Rajasthan (ACRL) cracked up today on the BSE on disappointment over the merger ratio with Gujarat Ambuja Cement.
The shares of the subsidiary of Gujarat Ambuja Cements (GACL), hit the 20 per cent lower limit of Rs 5.20 till the end of the trading session amid volumes of 23,450 shares. There were outstanding sell orders for 1.37 lakh shares on the counter on the BSE at the lower limit.
The GACL board on Monday had approved the merger of Ambuja Cement Rajasthan Ltd into Gujarat Ambuja Cements Ltd. Based on the valuation report of N M Raiji & Co, the swap ratio has been fixed as one share of Gujarat Ambuja Cements Ltd for every 50 shares of Ambuja Cement Rajasthan Ltd. The merger proposal is subject to the approval of BIFR, the shareholders and the other requisite approvals.
ACRL had staged a sharp recovery in the last few trading sessions ahead of the decision on the ratio of merger between ACRL and GACL. From Rs 3.65 on May 21, 2002, the scrip surged 76.7 per cent to Rs 6.45 on Monday, July 15, 2002, the day of the board meeting for determining the merger ratio.
According to market sources, based on the closing prices of ACRL and GACL - Rs 6.45 and Rs 197.45 - on Monday, the merger ratio seemed disappointing to ACRL resulting in a sharp setback in ACRL.
