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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)

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Ambuja Cement | ACC | Adani Enterprises

BS Reporter 

markets
Group’s flagship firm Adani Enterprises dropped 5.1 per cent

of and Ambuja Cements fell sharply on Wednesday on concerns around high encumbrance. A day earlier, the 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.

of 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.

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The holds 63.15 per cent in Ambuja Cements and 56.69 per cent in (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 .

“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.

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First Published: Wed, September 21 2022. 19:49 IST
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