Adani Group chairman Gautam Adani’s cement company, Ambuja Cement, has announced the purchase of Penna Cement Industries Limited. Ambuja Cement has acquired a 100% stake in Penna Cement for Rs 10.422 crore. With this acquisition, Ambuja Cement’s annual cement production capacity has increased by 14 million tonnes annually to 89 million tonnes.
The Company Disclosed In The Exchange Filing
Ambuja Cement has informed about this deal in the regulatory filing with the stock exchanges. The company said in its filing that at the board meeting held on June 13, 2024, its Board of Directors agreed to buy a 100% stake in Penna Cement Industries Limited (PCIL).
Adani Cement’s Stake Will Increase By 2 Percent
Ambuja Cement will buy this stake from Penna Cement’s current promoter, P Pratap Reddy and his family. The company will fund this acquisition. On this deal, Ambuja Cement CEO Ajay Kapoor said that this acquisition will be a milestone in accelerating Ambuja Cement’s growth journey. He said after the acquisition of Penna Cement, Ambuja Cement will strengthen its presence in South India and become a leader in the cement industry across the country.
After this acquisition, Adani Cement’s market share across India will increase by 2 percent, and the same share in South India will increase to 8 percent. This deal will take 3 to 4 months to complete.
Ambuja Cement Stock Closed Down
Ambuja Cement announced this after the stock market ended today’s trading session. Earlier, Ambuja Cement’s stock closed at Rs 664.50, with a decline of 0.63 per cent. The market cap of Ambuja Cement is Rs 1,63,674 crore.
