The Adani Group, promoter of both ACC and Ambuja Cement, clarified in a statement on Wednesday that no shares of either the company’s subsidiaries, ACC or Ambuja, have been pledged by the promoters as part of their acquisition financing. The statement also added that they have provided only a non-disposal undertaking.
The group further said that as the promoters have only provided the non-disposal undertaking, there is no requirement to provide any top-up shares or cash from either of the companies, under the acquisition financing raised last year.
For those who are not aware, a non-disposal undertaking is an agreement in relation to any loan obligation undertaken, that is signed by the debtor in favour of the lender. In simpler terms, it means that the debtor can not offload any of the shares pledged until they can pay the debt off.
After Adani Group acquired both ACC and Amubja Cement last year in a cash deal of Rs 50,000, it became the second-largest cement player. However, according to the latest data on the exchanges, nearly all of Ambuja and 11.7 per cent shares of ACC have been pledged. This is because, according to Indian accounting standards, there is no provision to disclose a non-disposal undertaking. This means that technically none of the shares have been pledged.
Post clarification by the Adani Group, the shares of ACC and Ambuja Cements rebounded. But the NSE on Thursday banned the trade of Ambuja Cements shares under the futures and options (F&O) segment.
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