Ambuja Cements is trading higher by 4% at Rs 185, extending its 5% rally in past two days on BSE, amid reports that the market regulator the Securities and Exchange Board of India (Sebi) is examining the Holcim deal with respect to rights of minority shareholders.The BSE benchmark index S&P BSE Sensex has decline 2% in past three trading sessions.
Sebi is likely to write to the management of Holcim in India expressing concern over the recent group-level restructuring, the Economic Times report suggests.
The deal was criticised by corporate governance experts and brokerage firms as being against the interests of minority investors, the report said.
On July 25, shares of Ambuja Cements had tanked 10.5% from Rs 191 to Rs 171 after Swiss giant Holcim announced that it was merging one of its Indian subsidiaries, Holcim India Pvt Ltd, with Ambuja Cements, the listed company.
Ambuja will pay Holcim Rs 3,500 crore for a 24% stake and issue shares for the remaining 76%. ACC, where fully owned arm Holcim India holds 50%, will become a subsidiary of Ambuja Cements after the deal is completed.
Meanwhile, Financial Express report suggests that Holcim-Ambuja deal may face unexpected hurdle due to a recent Reserve Bank of India notification on foreign investments in Indian companies.
According to RBI circular, the downstream investments through internal accruals are permissible by an Indian company engaged only in the activity of investing in the capital of another Indian company/ies, added report.
Sebi is likely to write to the management of Holcim in India expressing concern over the recent group-level restructuring, the Economic Times report suggests.
The deal was criticised by corporate governance experts and brokerage firms as being against the interests of minority investors, the report said.
On July 25, shares of Ambuja Cements had tanked 10.5% from Rs 191 to Rs 171 after Swiss giant Holcim announced that it was merging one of its Indian subsidiaries, Holcim India Pvt Ltd, with Ambuja Cements, the listed company.
Ambuja will pay Holcim Rs 3,500 crore for a 24% stake and issue shares for the remaining 76%. ACC, where fully owned arm Holcim India holds 50%, will become a subsidiary of Ambuja Cements after the deal is completed.
Meanwhile, Financial Express report suggests that Holcim-Ambuja deal may face unexpected hurdle due to a recent Reserve Bank of India notification on foreign investments in Indian companies.
According to RBI circular, the downstream investments through internal accruals are permissible by an Indian company engaged only in the activity of investing in the capital of another Indian company/ies, added report.
