ACC and Ambuja Cements rose by 5.30% and 9.64% respectively at 10:28 IST on BSE after both the companies started evaluation of a potential merger between the two.
Meanwhile, the S&P BSE Sensex was up 87.74 points, or 0.29% to 29,946.54.ACC rose 5.30% to Rs 1,743. On the BSE, 35,000 shares were traded in the counter so far, compared with average daily volumes of 26,674 shares in the past one quarter. The stock had hit a high of Rs 1,753.85 and a low of Rs 1,680.35 so far during the day.
Ambuja Cements rose 9.64% to Rs 270.05. On the BSE, 12.49 lakh shares were traded in the counter so far, compared with average daily volumes of 1.61 lakh shares in the past one quarter. The stock had hit a high of Rs 270.50 and a low of Rs 258.10 so far during the day.
ACC and Ambuja Cements announced that their respective boards have agreed to start the evaluation of a potential merger between the two companies with a view to combine the strengths of both businesses. A special committee of directors, comprising largely of independent directors, has been constituted to commence the evaluation, ACC and Ambuja Cements said in separate statements after market hours on Friday, 5 May 2017.
No decision to merge has been taken and the board will decide on a merger upon receiving a recommendation from the special committee and the audit committee, the ACC statement said. ACC and Ambuja are both a part of conglomerate LafargeHolcim Group.
On a consolidated basis, Ambuja Cements' net profit rose 38.04% to Rs 396.96 crore on 6.83% growth in net sales to Rs 5631.90 crore in Q1 March 2017 over Q1 March 2016.
On a consolidated basis, ACC's net profit fell 8.91% to Rs 211.06 crore on 7.90% rise in net sales to Rs 3099.66 crore in Q1 March 2017 over Q1 March 2016.
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