Mumbai, Oct. 29 :    Mumbai, Oct. 29:  Gujarat Ambuja Cements (GACL) today became the first company to announce a buyback after the recent amendment in Companies Act made it easier for firms to purchase their own shares. The company said it would buy back shares worth 10 per cent of its equity capital at a maximum price of Rs 170 each in a transaction estimated to cost Rs 50 crore. The government had recently promulgated an Ordinance allowing promoters to buy back up to 10 per cent of their equity without shareholders approval. This was followed by a Securities and Exchange Board of India decision to double the creeping acquisition limit to 10 per cent. Sources said the Sekhsarias would raise their stake in the cement company to 38.5 per cent if they manage to mop up the targeted amount of shares. At present, FIIs (including Warburg Pincus) hold 15 per cent, mutual funds/banks at 21 per cent, the Washington-based International Finance Corporation 2 per cent; the public the rest of the company's Rs 155.11-crore equity capital. There is a feeling among many in the market that the Ambanis, Tatas and Birlas are likely to take advantage of these relaxations in buyback norms and the hike in creeping acquisition cap to boost stake in their companies. The Gujarat Ambuja scrip finished higher on the Bombay Stock Exchange (BSE). Opening at Rs 157.40, the scrip scaled an intra-day high of Rs 164.80, before closing at Rs 160.40 amid 5952 deals valued at Rs 8.97 crore. Meanwhile, the company announced a 112 per cent surge in net profit rose at Rs 53.23 crore in its first quarter ended September 30 against Rs 25.06 crore in July-Sept 2000. Net sales jumped to Rs 340.08 crore from Rs 290.26 crore. It sold 14.58 lakh tonnes of cement, an increase of 14 per cent over 12.81 lakh tonnes. The cement major said high productivity, lower production costs and firm prices helped improve its operating margin to 38.2 per cent from 35.2 per cent. Operating profits rose 30 per cent to Rs 114.43 crore. Pre-payment of high-interest loans reduced interest expenses to Rs 24.67 crore compared with Rs 32.22 crore. The company said demand went up 15 per cent in August and September, taking the first-half growth to 5.2 per cent at 49.4 million tonnes. It expects things to remain that way in the second half. The 2-million tonne plant coming up in Maharashtra will start production on schedule in December.