Home / Companies / News /  No shares of firms pledged by promoters, say Ambuja Cement and ACC

Amid the Adani Enterprises rout, Ambuja Cement Ltd and ACC Ltd on 2 February said that no shares of the firms have been pledged by the promoters, who have only provided a "non-disposal undertaking".

Releasing a joint statement to the stock exchanges, both Ambuja Cement Ltd and ACC Ltd termed as "misleading" reports of pledging of shares by the promoters as part of financing their acquisition.

"Consequently, there are market rumours that amid market volatility, there is a requirement to meet the top-up triggers where in there is selling pressure," the statement said.

ALSO READ: Adani Enterprises, Adani Ports, Ambuja Cement under ASM framework in NSE 

"We would like to clarify that none of the shares of Ambuja or ACC has been pledged by Promoters. The Promoters have only provided a non-disposal undertaking and accordingly, there is no requirement of providing any top-up of shares of Ambuja and ACC or cash top-up under the acquisition financing raised last year," it added.

The following statement arrived a day after the dani Group cancelled the 20,000-crore Follow-on Public Offer (FPO) of Adani Enterprises.

On Thursday, Adani Enterprises Chairman Gautam Adani said the decision to withdraw the fully subscribed FPO of the flagship firm of his group was primarily because of volatility in the market, adding, the fundamentals of the company are strong.

The Group's stocks lost over $100 billion in value sine a US-based short seller made damning allegations of stock manipulation and accounting fraud. Though the Adani group have been denied teh allegations.

On the last day of the share close on Tuesday, Adani Enterprises Ltd's 20,000 crore follow-on public offer managed to get investors. However, the Group on Wednesday decided to withdraw the FPO and refund the investors.

Through a Mauritius-based SPV Endeavour Trade and Investment Ltd (ETIL), Adani had acquired the two cement firms -- Ambuja and ACC.

Adani Group has encumbered its 63.15 per cent stake in Ambuja Cements and 56.7 per cent stake in ACC (of which 50 per cent is held by Ambuja) to the Hong Kong Branch of Deutsche Bank AG.

With PTI inputs.

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Recommended For You
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout