Shares of Ambuja Cements and ACC, two Adani group cement companies, climbed 10 per cent in Monday’s trade, even as a majority of Adani group stocks extended their recent falls, thanks to a media report that suggested the group was mulling a share buyback proposal for the former.

Following the report, shares of Ambuja Cements surged 11.84 per cent to hit a high of Rs 426.30 on BSE. ACC also jumped 10 per cent ti hit a high of Rs 2,072.45. This stock, however, cut gains as the session progressed. ACC was later trading at Rs 1,950.25, up 3.5 per cent.  Ambuja Cements owns 50.05 per cent stake in ACC.  

A report by Economic Times suggested that Adani Group was considering a share buyback of group firms Ambuja Cements and Adani Ports & SEZ worth up to Rs 3,000 crore. Talks are at an advanced stage and formal announcements by the company boards will be made in the coming weeks, it quoted sources as saying. ACC, on the other hand, jumped 10 per cent to hit a high of Rs 2,072.45.

The ET report citing one person said the management hopes that the buybacks, once announced, will bolster investor confidence in the group companies and address any misgiving about the group’s financial health. Adani Group has ambitious plans to double the combined capacity of ACC and Ambuja Cements to 140 MTPA in the next five years, the report noted, adding that  Ambuja Cements has reserves of 25,130 crore with a cash equivalent of Rs 8,504 crore as on June 30, 2022.

At 9.47 am, shares of Adani Ports were trading 5.33 per cent higher at Rs 630.50.

Adani Total Gas plunged 19.85 per cent to Rs 2,351.75. Adani Green slumped 19 per cent to Rs 1,202.55. Adani Transmission tanked 18 per cent to hit a low of Rs 1,648.

Adani Power fell 5 per cent to Rs 235.65. Adani Wilmar hit 5 per cent lower circuit limit at Rs 491.45.

Adani Group stocks have been battered of late after Hindenburg Research made allegations on Adani group including accounting frauds, stock manipulations and money laundering, while suggesting that it has gone short on Adani group stocks. Hindenburg Research said the Adani group stocks are commanding sky-high valuations and have 85 per cent potential downside.

In response, the group has accused the research house of not doing proper research, and ‘copy-pasting’ from the company disclosures. It also said that they either did not do proper research or did proper research but misled the public.

Also read: Adani Enterprises FPO: Group CFO says significant participation likely from institutional, strategic investors

Also read: Hindenburg effect: Adani Wilmar shares stuck in lower circuit; down 15% in three sessions

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