Ambuja Cement

Holderind Investments Ltd, Mauritius (“Holcim Mauritius”) and Ambuja Cement India Pvt Ltd have issued a public offer to acquire upto 306,553,600 fully paid equity shares (representing 20% of equity) at a price of Rs 154 per Share (Offer Price).

Schedule of Activities

Specified Date – September 21, 2007

Date of opening of the Offer – October 18, 2007

Last date of Close of the Offer – November 06, 2007

I purchased some stocks today was 133/- and today when the market is already overheated (15.5k levels) Ambuja Cement is one of the few options where people can park their money and make some quick bucks (offer price of 154/- is at about 16% premium.) Also after the offer, the controlling stake would be with Holcim (one of the largest suppliers of portland and blended cements and related mineral components), so the company can benefit from latest technology/processes and by re-marketing of international cement under its brand name.

PS: The cement stocks are already overvalued and so I expect Gujarat Ambuja to come back to 110-120 levels post November. So for the long term investments in cement sector, I would advice the investors to wait till the open offer is over and when government implements the proposed relaxation in the cement import laws. (somewhere around December this year)

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