Ambuja Cement announced on Tuesday its acquisition of 46.8% of Orient Cement Ltd (OCL) at an equity value of Rs 8,100 crore, aiming to boost its cement capacity to 100 MTPA by FY25 and increase its pan-India market share by 2%. The company also plans to make an open offer to acquire an additional 26% stake in OCL. This open offer, set to be completed within 3-4 months following the Substantial Acquisition of Shares and Takeovers (SAST) Regulations, is priced at Rs 395.40 per equity share, as per stock exchange filings. Karan Adani, Director of Ambuja Cements, highlighted that this acquisition is a key step in Ambuja's accelerated growth strategy, boosting its cement capacity by approximately 30 MTPA within two years.
The company sees OCL's strategic locations and high-quality limestone reserves as opportunities to enhance its cement capacity to 16.6 MTPA in the near future. The Adani Group, already a major player in sectors such as infrastructure, energy, and real estate, continues to strengthen its foothold in the cement industry, critical for India's infrastructural growth.
Following the acquisition announcement, the shares of both companies rose, with Ambuja Cement's shares increasing by 1.49% to Rs 580 and Orient Cement's shares trading at Rs 358.25, up by 1.65% as of 9:20 am. Ambuja will purchase 46.8% of OCL's shares from its current promoters and public shareholders, fully funding the acquisition through internal accruals.
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