Shares of cement companies ACC and Ambuja Cements rebounded after the promoter group issued a clarification over pledged shares of the company.

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The Adani Group, promoter of both ACC and Ambuja issued a clarification on Wednesday that no shares of either ACC or Ambuja have been pledged by the promoters and that they have provided only a non-disposal undertaking.

A non-disposal undertaking means that the debtor will not be able to offload any of the shares pledged until the entire debt has been paid off. The debtor in this case being the promoters of ACC and Ambuja i.e. the Adani group.

The group further said that due to the non-disposal undertaking, there is no requirement to provide any top-up shares of either company or cash, under the acquisition loans raised.

Adani Group is now the second largest cement player after completing the acquisition of ACC and Ambuja last year in a cash deal worth over Rs 50,000 crore. This was the largest acquisition ever by the Adani Group.

However, the latest shareholding pattern on the exchanges show that nearly all of Ambuja and 11.7 percent shares of ACC have been pledged.

This is because as per Indian accounting standards, there are no provisions to disclose a non-disposal undertaking and hence, it appears as encumbered shares while technically, none of the shares have been pledged.

Shares of Ambuja gained as much as 8.5 percent in early trade but are off the day's high. The stock currently trades 6.1 percent higher at Rs 354.50. The stock has corrected 30 percent over the last 10 trading sessions.

Shares of ACC have also corrected over 20 percent during the last 10 trading sessions. The stock is currently trading 1.4 percent higher at Rs 1,872.8.

First Published:Feb 2, 2023 10:36 AM IST