ANDHRA CEMENT

Investment Advisor, SP Tulsian is of the view that Andhra Cement could be held as a good buy because, if deal goes through definitely there will be open offer and the acceptance ratio will be quite high to the extent of 100% and under any conditions the deal is not likely to happen below Rs 50.

Tulsian told CNBC-TV18, 'There has been a talk that GP Goenka Group is interested in divesting their entire 73% stake and the valuation has been taken anywhere between Rs 60-75 per share because the company has 1.5 million operational capacity and 2 million is on the verge of completion by September or may be by June 2009. So, the valuation of about USD 60 million per tonne has been given for the capacity under creation and USD 75 per tonne for the capacity operational because it is a profit making company.'

He further said, 'But because there has been no news, the share prices have started correcting since yesterday and we have seen the share price having softened by about Rs 3-4. But if deal goes through definitely there will be open offer and the acceptance ratio will be quite high to the extent of 100% and under any conditions the deal is not likely to happen below Rs 50. So if you have the confirmation on the deal going through, it could be held as a good buy.'
Andhra Cement had touched an intraday high of Rs 22.46 and an intraday low of Rs 22.46. At 10:04 am, the share was quoting at Rs 22.46, up Rs 3.74, or 19.98%. Global giants Lafarge, CRH, Intacementi is eyeing stake in Andhra Cement, reports The Economic Times. It was trading
with volumes of 35,997 shares.


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