Ambuja Cements Limited shares surged 5.22% and have reached an all-time high of Rs 511.8 today after closing at Rs 486.40 yesterday. This is after the company announced that its top management is scheduled to meet on September 16, 2022, with the raising of funds for the company on the agenda.

The company’s share price today also marks a new 52-week high. The stock is trading at Rs 508.9 at the time of writing, which is a jump of 13.36% from the closing share price of Rs 448.90 last Wednesday. Ambuja has outperformed its sector by 3.26%. 

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Ambuja’s share price has been on the rise ever since the end of August and has gained 12.17% in the last three days as the Adani Group’s acquisition of the cement manufacturer, initiated by its Mauritius-based firm Endeavour Trade and Investment, picks up steam. 

The Adani Group had signed a binding agreement with Holcim Limited, which is the majority owner of Ambuja Cements, in May 2022 to fully acquire its business in India, and this $10.5 billion deal was given the green signal by the Security and Exchanges Board of India (SEBI) in August 2022. This deal is the largest ever acquisition by Adani, and also the largest ever acquisition in the infrastructure industry in India.

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The top management of Ambuja is now keen to raise funds for the company and announced as much in an exchange filing on Tuesday after the market had shut. The statement said: “A meeting of the board of directors of Ambuja Cements is scheduled to be held on September 16, 2022 inter-alia, to consider and evaluate proposal for raising of funds by way of issue of equity shares, convertibles and / or any other eligible securities, on a rights/preferential or any other permissible mode/ and/or combination thereof as may be considered appropriate.”

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In its second quarter report released on July 19, 2022, Ambuja Cements reported a standalone profit after tax of Rs 1,048 crore which marks a 45% year-on-year (YoY) jump from the figure of Rs 723 crore last year. Net sales of Rs 3,958 crores in the quarter also marked a YoY rise of 18.43%.