FIIs have suddenly turned bullish on the ACC stock and have more than doubled their exposure in the stock. As on date, the FII stake has shot up to 10.55 per cent from just 4.2 per cent during the beginning of the current calendar year. The ACC stock has become a darling of the FIIs, led by Jardine Fleming, Schrodders, Deutsche Morgan Grenfell and Advantage Advisors India Fund, who are learnt to have significantly upped their holding in the cement company.

ACC, as announced, will hit the market with its 1:4 rights issue in July and the stock will be traded on ex-rights basis on the Bombay Stock Exchange from Monday. At the National Stock Exchange the shares will be traded ex-rights with effect from Wednesday. "FIIs are taking greater interest in the ACC stock and have increased their holding in the company to over 10 per cent," confirmed a senior ACCofficial.

The appreciation in the stock has taken the market by surprise. From just over Rs 800 per share in December, the stock closed at Rs 1,985.25 on Friday, after breaching the Rs 2,000 mark. The bull run has been more pronounced during the last 10 days as the stock gained by Rs 650 per share (a jump of over 40 per cent). The dream run, sources say, has also been influenced by the fact that the Tata group has marginally shored up its stake in the company.

Tata Sons, the holding company of the Tata group, has in recent months marginally increased its stake in ACC by to 3.11 per cent, an increase of close to 0.5 per cent. The Tata group, which constitutes the present promoter group in ACC, currently holds 14.3 per cent in the company.

Apart from Tata Sons, the stake of the Tata group in ACC is held through Tata Chemicals, Tata Tea, Sabras Investments (arm of Tata Chemicals) and Tata Bambino (arm of Tata Tea).

"Investors are realising the true potential of ACC. The demand for cement is picking upand with no fresh capacities in the offing, the industry is heading for better times. The company, with its initiatives to improve productivity and enhance shareholder-value, is well positioned to take advantage of the market situation," company sources said.

Aided by an `other income' component of Rs 119 crore, ACC has reported a net profit of Rs 56.84 crore during 1998-99, up from Rs 13.44 crore in the previous fiscal. With cement prices looking up in Eastern India, ACC seems well poised to improve its realisations in the current quarter.