Adani Buys Orient Cement: Adani Group’s Ambuja Cement has announced the acquisition of Orient Cement, increasing its dominance in the sector. Ambuja Cement is going to spend Rs 8100 crore for this acquisition. The company will complete this purchase through the funds available with it. After this acquisition, the total operational capacity of Adani Cement will be 97.4 MTPA tonnes annually and the company is going to increase its production capacity to 100 million tonnes by March 2025.
Adani Cement’s market share increased by 2%
In a regulatory filing with the stock exchange, Ambuja Cement said that the acquisition of Orient Cement will help Ambuja Cement increase its production capacity in South and West India to 8.5 million tonnes per annum. Also, the market share of Adani Cement will increase by 2 percent. Despite this news, due to deteriorating market sentiment, Ambuja Cement’s stock is trading at Rs 563.15 with a decline of 1.49 percent.
The acquisition will be completed in 3-4 months
In the regulatory filing, the company said that it has signed an agreement to purchase 7,76,49,413 equity shares of 37.90 percent stake of Orient Cement Limited. Apart from this, the company will also acquire 8.90 percent stake which is equivalent to 1,82,23,750 equity shares. Apart from this, Ambuja Cement will make an open offer to buy 5,34,19,567 shares under 26 percent stake from the existing shareholders of Oriat Cement at the price of Rs 395.40 per share. Ambuja Cement said that this acquisition will be completed in 3-4 months.
Target of 140 million tonnes by 2028
After the acquisition of Orient Cement, the annual capacity of Ambuja Cement will reach 100 million tonnes by 2025. The company has fixed the target of increasing it to 140 million tonnes by the year 20028. Earlier, Adani Group had acquired Sanghi Cement Limited in December 2023. This year the group had also announced the purchase of Penna Cement. On this acquisition, Karan Adani, Director of Ambuja Cement, said, this acquisition done at the right time will help in accelerating the growth of Ambuja Cement and the capacity can be increased by 30 million tonnes in two years.
read this also
Voluntary Retirement: Central employees covered under NPS can take voluntary retirement, government made new rules
