Ambuja Cements gains after court approval for Holcim amalgamation

Ambuja Cements rose 1.83% to Rs 186.45 at 15:16 IST on BSE after the company said that High Courts of Gujarat and New Delhi have approved the scheme of amalgamation of Holcim India with the company.

The company made the announcement during trading hours today, 26 March 2014.

Meanwhile, the BSE Sensex was up 37.79 points, or 0.17%, to 22,093.

On BSE, so far 86,000 shares were traded in the counter, compared with an average volume of 1.15 lakh shares in the past one quarter.

The stock hit a high of Rs 188.80 and a low of Rs 182.45 so far during the day. The stock hit a 52-week high of Rs 211.90 on 18 July 2013. The stock hit a 52-week low of Rs 147.55 on 28 August 2013.

The stock had outperformed the market over the past one month till 25 March 2014, rising 11.71% compared with the Sensex's 5.77% rise. The scrip had, however, underperformed the market in past one quarter, rising 0.99% as against Sensex's 4.86% rise.

The large-cap company has an equity capital of Rs 309.25 crore. Face value per share is Rs 2.

Ambuja Cements said that the High Court of Gujarat while sanctioning the scheme of amalgamation has also approved the reduction of capital of the company as envisaged in the scheme.

Certified copies of the order from both the High Court is awaited. The effectiveness of the scheme is subject to fulfillment of conditions precedent specified therein. The company will separately intimate the stock exchanges once the scheme becomes effective, the company said in a statement.

Ambuja Cements' net profit surged 49.3% to Rs 316.50 crore on 5.3% decline in net sales to Rs 2191.34 crore in Q4 December 2013 over Q4 December 2012.

Ambuja Cements is engaged in manufacturing and marketing cement and clinker for both domestic and exports markets.

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