Ambuja Cements Shares Jump on Adani Group's $2.51 Billion Infusion Plan

By Kosaku Narioka

Ambuja Cements Ltd. shares rose sharply Monday on news that Adani Group plans to inject 200 billion rupees ($2.51 billion) into the Indian cement company it just acquired in a bid to capture market growth.

Ambuja Cements' shares were recently 8.6% higher at INR560.85 after rising as much as 10% earlier.

The company said Friday after market close that it planned to raise INR200 billion by issuing warrants to an Adani entity.

Adani said Friday that it had completed the purchase of controlling stakes in Ambuja Cements and ACC Ltd. from Swiss building-materials maker Holcim Ltd. Adani now holds a 63% stake in Ambuja Cements, which is a majority shareholder of ACC.

Jefferies analyst Prateek Kumar said in a research note that the additional funding came as a big surprise and, together with the company's current cash balance and internal accruals, gives it a large enough war chest to scale up new expansions.

ACC shares were recently 2.3% higher, while those of rival cement maker UltraTech Cement Ltd. were down 0.5%.

Write to Kosaku Narioka at [e-mail]

(END) Dow Jones Newswires

09-19-22 0230ET