ACC, Ambuja Cements shares tank over 5% on concerns over encumbrance

The Adani group holds 63.15 per cent in Ambuja Cements and 56.69 per cent in ACC (of which 50.05 per cent is held through Ambuja Cements)

Topics  Ambuja Cement | ACC | Adani Enterprises

Group’s flagship firm Adani Enterprises dropped 5.1 per cent

Shares of ACC and Ambuja Cements fell sharply on Wednesday on concerns around high encumbrance. A day earlier, the Adani Group had announced that it has signed a non-dealing undertaking (NDU) with foreign banks on its entire stake in the two newly-acquired cement companies to raise funds for their acquisitions.

Shares of ACC fell 7.2 per cent while Ambuja Cements ended 5.7 per cent lower. Other group stocks, with the exception of Adani Wilmar, also finished lower. Group’s flagship firm, Adani Enterprises, dropped 5.1 per cent.

Market experts said that there are concerns around the group’s high debt levels after Adani’s acquisition of the two cement units, for which the group has paid $6.4 billion to Swiss cement major Holcim.

The Adani group holds 63.15 per cent in Ambuja Cements and 56.69 per cent in ACC (of which 50.05 per cent is held through Ambuja Cements). Ambuja Cements also announced that its arms -- Endeavour Trade and Xcent Trade -- have borrowed from Deutsche Bank (DB) by creating encumbrance on its shares.

“Under certain deeds of fixed and floating charge, over 100 per cent shares in ETIL, XTIL and Holderind Investments have been created in favour of DB,” Ambuja said in its filing.


Subscribe to Business Standard Premium

Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!

Insightful news, sharp views, newsletters, e-paper, and more! Unlock incisive commentary only on Business Standard.

Download the Business Standard App for latest Business News and Market News.

Read our full coverage on Ambuja Cement

First Published: Wed,September 21 2022 19:49 IST
Business Standard is now on Telegram.

For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel

Also Read
Most Read
Markets
Companies
Opinion
Latest News
Todays Paper
News you can use