Mumbai, April 23: Holcim has increased its stake in Gujarat Ambuja Cements (GACL) by acquiring over 2.79 crore shares in a block deal worth Rs 321.55 crore on the Bombay Stock Exchange.

These shares, comprising nearly 1.8 per cent of GACL’s equity, were acquired by Holderind Investments, a holding company of Holcim. The acquisition will raise Holcim’s stake in GACL to over 30 per cent.

Over the past few months, Holcim has gradually increased its stake in companies that are under its belt. In November, it bought 5 crore shares, or 3.7 per cent, from entities controlled by GACL’s founder promoters. These shares were acquired by Holderind Investments from RKBK Fiscal Services and Radha Madhav Investments. Holcim shelled out Rs 685 crore for the transaction and the deal price was 32 per cent higher than the Rs 105 per share that the Swiss company paid the Sekhsarias and Neotias when it bought 14.8 per cent in GACL in early 2006.

The founder promoters had then sold 20 crore shares constituting around 14.8 per cent of the equity capital of GACL and the price also included a non-compete fee of Rs 15 per share. After the sale, the founder promoters of GACL held around 9 per cent of GACL’s equity.

Though Holcim came out with an open offer later, it did not evoke a positive response. Holcim had acquired the 14.8 per cent stake from the founder promoters of GACL for a consideration of Rs 2,100 crore ($477 million).

On the BSE, GACL shares closed lower at Rs 115.05 today against the previous close of Rs 115.45.

GACL profit

GACL has posted an over 43 per cent growth in net profit for the first quarter ended March 31 at Rs 590.74 crore compared with Rs 412.77 crore in the same period last year.

Total income (net of excise) grew to Rs 1,700.25 crore for the quarter from Rs 1,131.07 crore last year.

GACL said there was a demand growth of 6.6 per cent in the quarter. The company feels the demand for cement will be strong in future following a robust economic growth.