Ambuja Cements' shares increased by about 10 per cent to a record high on Monday, following the acquisition of the firm by the billionaire Gautam Adani's Adani Group.
On Friday, Ambuja said that it was looking to raise 200 billion rupees ($2.51 billion) through an issue of convertible warrants to an Adani Group company.
The Adani group ventured into cement-making operations earlier this year with its $10.5 billion acquisition of Holcim AG's cement businesses in India - Ambuja Cements Ltd and ACC Ltd.
Ambuja Cements stock rose as high as Rs 567.90 per share on Monday, it was last at Rs 555.60, up 7.61 per cent. Shares of ACC Ltd also rose after Adani's son Karan was made chairman of the board.
Days after completing the acquisition of Ambuja Cements and ACC, Gautam Adani said his group has planned to double cement manufacturing capacity and become the most profitable manufacturer in the country.
Gautam Adani said he saw a multifold rise in cement demand in India on the back of record-breaking economic growth and the government's infrastructure creation push, which will give significant margin expansion.
The Adani group of firms' overall market capitalisation on the BSE at over Rs 22 lakh crore on Friday, made it the most valued in India, overtaking the Tata-led conglomerate.
Based on Friday's close, the market valuation of all BSE listed stocks of Adani Group, totalling nine firms, including the recently acquired Ambuja cement and ACC LTD, stood at over Rs 22 lakh crore, surpassing 27 of Tata Group of firms listed with a market capitalisation (market cap) of more than Rs 20 lakh crore.
Gautam Adani surpassed Jeff Bezos and Bernard Arnault to grab the second spot with a net worth $154.7 billion, but only for a brief period.
Currently, with a net worth of $153.7 billion, he is ranked third-richest in the world, behind billionaires Elon Musk and Bernard Arnault, according to Forbes.
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