Ambuja Cements shares jump over 9 per cent after Rs 20,000 cr fund infusion announcement

New Delhi: Shares of Ambuja Cements on Monday zoomed over 9 per cent after the announcement of infusion of Rs 20,000 crore in the company.

In a media statement on Friday, the Adani group announced the completion of acquisition of Ambuja Cements and ACC for a total consideration of USD 6.5 billion which includes buyout of Swiss major Holcim's state in the two firms and subsequent open offers to minority shareholders.

Shares of Ambuja Cements jumped 9.42 per cent to settle at Rs 564.95 apiece on the BSE. During the day, it zoomed 10.83 per cent to Rs 572.25 -- its 52-week high.

ACC climbed 1.08 per cent to finish at Rs 2,643. In intra-day trade, shares of the company went up by 4.07 per cent to Rs 2,721.35.

Billionaire Gautam Adani's son Karan will helm the cement firms his group has acquired to become India's second largest cement player and extend his burgeoning empire that spans from ports and energy to airports and telecom.

The new board of Ambuja Cements approved an infusion of Rs 20,000 crore in the company by way of preferential allotment of warrants to equip the firm "to capture the growth in the market." The acquisition of the two cement firms is the largest-ever buyout in the infrastructure and materials sector so far in the country and also the biggest acquisition by Adani.

Adani group's acquisition of Holcim's stake in ACC and Ambuja has boosted growth expectations, according to a report by Emkay Global Financial Services.