Ambuja Cements is considered to be India’s second-largest cement maker. Its shares have subsequently been placed on a Short-term Watchlist; they surged more than 40 per cent following business tycoon and billionaire Gautam Adani’s procurement of the company in May.

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On September 21, Ambuja Cements was added to the Additional Surveillance Mechanism, which the bourse uses to “Alert and guide investors to become extra cautious while dealing in these financial securities,” as shown on the National Stock Exchange of India’s website. Adani had spent $6.5 billion to buy the controlling stake in Ambuja Cements and ACC Limited from Swiss Corporate Holcim. The stocks on the list tend to observe the selling pressure as they undergo additional scrutiny for up to 15 trading sessions, facing complex margin rates. In a recent example, the shares of Coffee Day Enterprises, operating a Cafe Chain, slithered more than 10 per cent over three days after being listed on September 14. On Friday, Ambuja Cements lost 7 per cent in the early two sessions before rising.
“It is infrequent for a big stock like Ambuja Cements to enter the ASM framework,” said Suniil Pachisia, the head of the Institutional Equity Desk with Pratibhuti Vinihit. “Besides Preferential Allotment, there is no other alternative for this run-up as it is a good step for countering the volatility.”
Adani Group has overloaded about $13 billion of its stake in the two cement firms under a non-disposal responsibility along with the lenders as it reflects the World’s Second-Richest Billionaire’s hunger for capital as his ports-to-power corporation expands rapidly with time.