Adani Buys Orient Cement: Adani Group’s Ambuja Cement has announced the acquisition of Orient Cement, increasing its dominance in the sector. Ambuja Cement will spend Rs 8100 crore on this acquisition and complete the purchase using its funds. After this acquisition, Adani Cement’s total operational capacity will be 97.4 MTPA tonnes per annum, and by March 2025, the company will increase its production capacity to 100 million.
Adani Cement’s Market Share Increased By 2%
In a regulatory filing with the stock exchange, Ambuja Cement said that after the acquisition of Orient Cement, Ambuja Cement will be able to increase its production capacity in South and West India to 8.5 million tonnes per annum. Also, Adani Cement’s market share will increase by 2 percent. Despite this news, due to deteriorating market sentiment, Ambuja Cement’s stock is trading at Rs 563.15, down 1.49 percent.
Acquisition Will Be Completed In 3-4 Months
In the regulatory filing, the company said it had signed an agreement to buy a 37.90 per cent stake in Orient Cement Limited, which is 7,76,49,413 equity shares. The company will also acquire an 8.90 per cent stake, equal to 1,82,23,750 equity shares. Apart from this, Ambuja Cement will bring an open offer of Rs 395.40 per share to buy 5,34,19,567 shares under 26 percent stake from the existing shareholders of Orient Cement. Ambuja Cement said this acquisition will be completed in 3-4 months.
Target Of 140 Million Tonnes By 2028
After the acquisition of Orient Cement, Ambuja Cement’s annual capacity will be 100 million tonnes by 2025. The company has fixed a target to increase it to 140 million tonnes by 2028. Earlier, the Adani Group acquired Sanghi Cement Limited in December 2023. This year, the group also announced the purchase of Penna Cement. Ambuja Cement Director Karan Adani said this timely acquisition will help accelerate the growth of Ambuja Cement, and its capacity can increase by 30 million tonnes in two years.
