Fund managers are forecasting that Holcim, the majority shareholder in Ambuja Cements, may announce another buyback of shares — to hike its stake in the company. Holcim currently holds 30% in the company that was formerly called Gujarat Ambuja Cements.
Cement firms have been registering strong earnings for the past two years on the back of an investment boom in the Indian economy and increased construction activity.
Industry analysts expect cement prices to rise after the monsoon as most regions are facing a shortage.
Fund managers believe that in such an optimistic scenario the Swiss major would be more than keen to hike their stake, so as to have a larger share of the world’s second-largest cement market which is growing at more than 8% annually.