Adani Group’s Ambuja Cement has announced the acquisition of Orient Cement, further strengthening its position in the cement sector. Ambuja Cement will spend ₹8,100 crore for this acquisition. The company will use its available funds to complete this purchase. After the acquisition, Adani Cement’s total operational capacity will reach 97.4 million tons per year, and by March 2025, the company aims to increase its production capacity to 100 million tons.
2% Market Share Increase for Adani Cement
In a regulatory filing with the stock exchange, Ambuja Cement stated that after acquiring Orient Cement, it will increase its production capacity in South and West India by 8.5 million tons per year. This acquisition will also boost Adani Cement’s market share by 2%. Despite this news, Ambuja Cement’s stock is trading 1.49% lower at ₹563.15 due to negative market sentiment.
Acquisition to Be Completed in 3-4 Months
The regulatory filing also mentioned that Ambuja Cement has signed a deal to acquire a 37.90% stake in Orient Cement, which includes 7,76,49,413 equity shares. Additionally, the company will acquire an 8.90% stake, equal to 1,82,23,750 equity shares. Ambuja Cement plans to make an open offer to buy 26% more shares (5,34,19,567 shares) from existing shareholders at ₹395.40 per share. The acquisition is expected to be completed within 3-4 months.
Target of 140 Million Tons by 2028
After acquiring Orient Cement, Ambuja Cement’s annual capacity will reach 100 million tons by 2025. The company has set a target to increase this capacity to 140 million tons by 2028. Previously, Adani Group acquired Sanghi Cement in December 2023 and also announced the purchase of Penna Cement earlier this year. Karan Adani, Director of Ambuja Cement, said that this timely acquisition will boost the growth of Ambuja Cement and help increase the company’s capacity by 30 million tons in the next two years.
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