Ambuja Cements block deal: Promoters Adani Group to sell part stake worth $500 mn

Investment bank Jefferies is acting as the advisor on the deal and there is a lock-in period of 60 days.

Ambuja Cements promoter group entity Holderind Investments Ltd has launched a block deal to sell 2.84 percent stake for $500 million, multiple sources in the know told Moneycontrol.

The floor price for the block deal is Rs 600 per share, a 5 percent discount to the last closing price of Rs 631.80 per share on August 22. The stock price of the cement maker has risen by nearly 38 percent in the last year.

Moneycontrol has reviewed a copy of the deal termsheet. Investment bank Jefferies is acting as the advisor on the deal and there is a lock-in period of 60 days.

The promoter group collectively holds 70.33 percent stake in Ambuja Cements out of which Holderind Investments Ltd hold 50.90 percent stake.

Ambuja Cement could not be contacted for an immediate response.

In June, Adani Group-owned Ambuja Cements announced the acquisition of a 100 percent stake in Penna Cement Industries Ltd (PCIL) for an enterprise value of Rs 10,422 crore. The move was in line with the Adani Group's target to hit a capacity of 140 million tonne per annum (MTPA) by 2028.

Later, in August, the firm announced its first venture in Bihar, marking the largest investment in the state by a cement industry player. The Warisaliganj Cement grinding unit, a standalone facility with an overall capacity of 6 MTPA, will be established at an investment of nearly Rs. 1,600 crore, the cement major said.