Shares of Ambuja Cements and Adani Ports fell sharply last week along with other Adani Group stocks following US-based short-seller Hindenburg Research’s adverse report on the conglomerate.
“The management hopes that the buybacks, once announced, will bolster investor confidence in the group companies and address any misgiving about the group’s financial health,” said the first person cited above.
“As things stand, the announcement about the buyback is likely after the conclusion of the ongoing follow on public offer (FPO) of
(AEL) that opened last week,” said the person.
An emailed query in this regard sent to group spokespersons did not elicit a response until press time on Sunday.
The share price of Ambuja Cements plunged as much as 25% on Friday, its steepest intra-day fall since 2006. The stock closed 17% lower at ₹380.45. The Adani Ports stock declined 23% last week, and 16.3% on Friday alone, to close at ₹596.95, its lowest close since February 11, 2021.
Ambuja Cements’ balance sheet and return on equity is in the top tier with regard to the Indian cement space.
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