GACL ups stake in Ambuja Cements
Mumbai: Gujarat Ambuja Cements has hiked its stake in the erstwhile DLF Cement (now known as Ambuja Cement Rajasthan) from 42.17 per cent to 49 per cent. The preferential allotment, which was earlier pegged at Rs 13.85 per share (the price at which GACL made an open offer after buying out the erstwhile DLF Cement promoters at Rs 12.65 per share in December last year), has been made at Rs 10 per share.

Following the preferential allotment, the company’s share capital has increased from Rs 231 crore to Rs 262 crore. The hike in promoters’ stake follows a preferential allotment of 3.1 crore shares at Rs 10 per share. The fresh infusion of Rs 31 crore, has thus, helped the company to stay outside the purview of BIFR.

For the nine-month period ended June 2000, ACRL posted a loss of Rs 67 crore. The company’s accumulated losses aggregate to Rs 223 crore, while its share capital is just marginally higher at Rs 231 crore.

As per the provisions of Sick Industrial Companies (Special Provisions) Act 1985, a company has to be referred to BIFR if accumulated losses wipe out its net worth.

GACL had acquired management control of DLF Cement a year back for a consideration of Rs 131 crore. The new management is now targeting to achieve a cash break even in the current financial year.
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