Sekhsaria-Neotia sell 3.7% in Gujarat Ambuja for Rs 690 crore
To capitalise on the fast-growing cement industry in India, the world’s second largest cement maker, Holcim of Switzerland, on Thursday hiked its stake in Gujarat Ambuja Cements Ltd (GACL) by buying another 3.7% in a deal valued at around Rs 690 crore.
According to sources, the sale by the GACL promoters is in step with their strategy to gradually move out of the company. Holcim had earlier said it would hold a sizeable stake in GACL.
Holcim bought 5 crore shares from the company’s promoters, Narotam Sekhsaria and Suresh Neotia, at Rs 138 a share, taking its holding to nearly 18.5%.
Subsequently, after the proposed merger of GACL with Ambuja Cements Eastern Ltd, the Holcim stake is expected to settle at close to 27%. Sources said Holcim might want to take it further to mirror its stake in the other cement major, ACC, where it holds about 35%.
Holcim had bought a 14.8% stake in GACL from the Sekhsarias in January in a deal valued at over $470 million. It was prepared to pump in over $1 billion to take its stake in GACL to 35%.
According to information available with the Bombay Stock Exchange, the deal involved Radha Madhav Investments Ltd selling 3.35 crore shares and RKBK Fiscal Services Pvt Ltd off-loading 1.65 crore shares to Holderind Investment Ltd.
Manish Balwani, research analyst, Emkay PCG, said, “Going ahead, one can safely say that more and more foreign players will be looking at Indian cement manufacturers.”
The GACL stock gained 1.20% or Rs 1.65 on the BSE to end the day at Rs 138.90. The stock also touched a lifetime high of Rs 141.50 during intra-day trades on Thursday.
