New Delhi:
Adani Group Chairman Gautam Adani has once more made a giant wager within the cement business. Adani Group Cement Firm Ambuja Cements (Ambuja Cements Ltd.) has additional strengthened its place within the cement market. As a part of its enlargement drive, the corporate on Tuesday introduced the acquisition of Orient Cement Ltd. for Rs 8,100 crore.
In an trade submitting, Ambuja Cements mentioned the acquisition of Orient Cement will add 16.6 million tonnes to the annual capability of Ambuja Cements. This buy can be fully by way of inside cost. On this deal, Adani Group firm Ambuja Cements will purchase 46.8% stake from promoters and different associated entities.
The corporate will make an open supply to amass further 26% stake at Rs 395.40 per share.
Orient Cement shares at life time excessive
After this information got here out, the shares of Orient Cement have reached life time excessive. An incredible rise of seven% has been seen within the inventory. Ambuja Cements shares had been additionally buying and selling with a acquire of two% after this information.
Ambuja Cement’s place will change into stronger
The corporate mentioned in an announcement that the acquisition of Orient Cement, a cement firm of C Okay Birla Group, will additional strengthen Ambuja Cement’s present presence. After this deal, the operation capability will come right down to $58 per tonne, which is lower than the greenfield set-up price of $110-120 per tonne. The acquisition is anticipated to be accomplished in three to 4 months.
With presence in Telangana, Karnataka and Maharashtra, Orient Cement has a present capability of 8.5 million tonnes each year (MTPA) and carried out cement capability of 8.1 MTPA. With this, the capability of Ambuja Cements will attain 100 MTPA by 2025 and 140 MTPA by 2028.
Orient Cement shareholders will profit from this deal
Sunny Aggarwal, Chief of Elementary Fairness Analysis at SBICap Securities, mentioned, information of Orient Cement-Ambuja deal was already coming available in the market and it’s going to be constructive for each the gamers. He mentioned that the excessive acquisition value advantages the shareholders of Orient Cement.
He mentioned that for Ambuja, it was fighting capability constraints earlier than the Adani acquisition. Having access to southern markets is now constructive. Consolidation is happening within the cement sector.
(Disclaimer: New Delhi Tv is a subsidiary of AMG Media Networks Restricted, an Adani Group Firm.)
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