Shares of Ambuja Cements hit a new high of Rs 503 on the BSE, as the stock rose 3.4% in intraday trade on Wednesday, despite the overall market weakness.

Shares surged after the company said its board of directors would meet on Friday, September 16, 2022, to consider a fundraising plan. The S&P BSE Sensex was down 0.89% at 60,033 at 9:35 am.

“Ambuja Cement Board of Directors meeting scheduled for September 16, 2022, to, among other things, consider and evaluate the adoption of the issuance of shares, convertible bonds and/or any other eligible securities, rights/interests or any other permitted modalities/and/ or a combination they may be deemed suitable,” the company said in an exchange filing after-market hour on Tuesday.

The company said all such regulatory/statutory approvals are required for fundraising.

The stock has risen 14% over the past week, compared with a 1% gain for the benchmark. Also, it has gained 30% over the past month, while Sensex has gained 0.73%.

Adani family acquires an additional 26% stake in Ambuja Cements in an offer; ACC closes on September 9, 2022. The mandatory public sale in cash comes after the Adani family bought a 63% stake in Ambuja Cements from Swiss cement giant Holcim. Ambuja Cements owns 54.53% of ACC.

Meanwhile, Ambuja is targeting to have a 1.5-metric-ton cement grinding capacity commissioned in the north by June 20 and a 3-metric-ton/7-metric-ton clinker/cement grinding capacity in the eastern region by the second half of 2024 (H2CY24). Following this announcement, its total production capacity will increase to 40 metric tonnes from 31.5 metric tonnes. Additionally, Ambuja plans to achieve a 50 metric-ton capacity in the next few years by expanding western capacity and de-bottlenecking at various locations.

“Waste Heat Recovery System (WHRS) projects at Marwar, Darlaghat and Bhatapara are on track and expected to be commissioned in the third quarter of 2022. The next phase of WHRS projects at Ambujanagar and Maratha is in full swing,” Emkay Global Analysis Financial Services Shi Zeng said in its June quarter results update.