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Our Bureau

Mumbai , Feb. 4

SHARES of Associated Cement Company (ACC) today closed above the open offer price of Rs 370 announced by Swiss cement major Holcim to the shareholders of the Indian company. The open offer is slated to commence on March 9.

In today's trading, the stock price of the company closed at Rs 375.65 on the BSE, up 3.4 per cent over the previous close. On the NSE, it closed at Rs 375.85, up 3.4 per cent.

Brokers and analyst said the upward move in the stock was in anticipation that Holcim may hike the open offer price. They expect the possible revision in the offer price to around Rs 425.

However, none of the officials of Holcim or its merchant banker was available for comments.

Last month, Holcim had acquired stake in Ambuja Cement India, which holds slightly less than 15 per cent in ACC. Holcim intends to make open offer for over 38 per cent stake of ACC and take overall holding in ACC through Ambuja Cement India to more than 50 per cent.

But brokers said several institutional investors - both domestic and foreign - are not very happy with offer price. "Since institutional investors will play an important role in making the open offer successful if Holcim were to increase its stake to above 50 per cent in ACC, a hike in offer price is possible," said a broker.

Institutional investors together hold 59.32 per cent stake in ACC at the end of December quarter. Of this, mutual funds hold 14.30 per cent, banks and financial institutions 21.75 per cent and FIIs hold 23.27 per cent.

Brokers said ACC is one of the largest cement companies in India and several analysts are upbeat on the cement sector and ACC.

"Since the outlook for the cement sector as a whole is very bright, the offer price of Rs 370 is low considering the growth ACC would show in next 2-3 years," said an analyst with a foreign broking firm.

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