HeidelbergCement India Share Price Surges On Reports Of Adani Buyout

HeidelbergCement India Ltd.'s share price surged nearly 18% to a life high on Monday after reports of a likely buyout by the Adani Group. Ambuja Cements Ltd. is planning to buy Germany-based Heidelberg Materials' local unit for around $1.2 billion, the Economic Times reported.

Heidelberg Materials entered India in 2006, and acquired majority stakes in Mysore Cements and Cochin Cements, as well as the Indorama Cement joint venture, which was converted to a full acquisition in 2008. Following the merger with Indorama Cement, Mysore Cements was renamed HeidelbergCement India in 2009.

The company has its operations in central India at Damoh in Madhya Pradesh, Jhansi in Uttar Pradesh and in southern India at Ammasandra in Karnataka.

According to its website, HeidelbergCement India has four integrated cement plants, four grinding units and a terminal. Its installed capacity stands at about 14 million tonnes, with sales operations across 12 states.

The company has a market cap of Rs 5,653 crore.

Shares of HeidelbergCement advanced nearly 18% in the early hours of trading to Rs 258 apiece. They pared gains to trade 11% higher at Rs 243 per share at 10:15 a.m., compared to a 0.2% advance in the NSE Nifty 50.

The stock has risen 26% in the last 12 months and 5% year-to-date. Total traded volume so far in the day stood at 62 times its 30-day average. The relative strength index was at 46.

Of the 13 analysts tracking HeidelbergCement, one has a 'buy' rating on the stock, five recommend a 'hold' and seven suggest a 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential downside of 20%.

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