Adani Group's Ambuja Cements to acquire 47% stake in Orient Cement for Rs 8,100 crore

The acquisition involves purchasing a 46.8 percent stake in OCL from its existing promoters and select public shareholders at Rs 395.40 per share, representing a 12 percent premium over the last closing price.

Additionally, Ambuja Cements will launch an open offer to acquire another 26 percent stake from Orient Cement shareholders at the same price of Rs 395.40 per share, in compliance with SEBI's Substantial Acquisition of Shares and Takeovers (SAST) regulations.

The deal, expected to close in the next three to four months, will be financed through Ambuja's internal accruals.

Orient Cement, founded in 2011, focuses on cement manufacturing and sales, reporting a turnover of Rs 3,185.09 crore as of March 2024.

This acquisition aligns with Ambuja Cements’ strategy to expand its presence in the cement industry, helping it move towards a target production capacity of 140 million tonnes per annum (MTPA) by 2028.

Orient Cement currently operates with a clinker capacity of 5.6 MTPA and a cement capacity of 8.5 MTPA, along with power generation assets spread across Telangana, Karnataka, and Maharashtra.

The deal is expected to boost Adani Group’s market share in India's cement industry by 2 percent.

Karan Adani, Director of Ambuja Cements, stated that the acquisition will increase Ambuja’s cement capacity to around 100 MTPA by FY25 and further enhance its footprint in key markets.

This acquisition follows a series of strategic moves by the Adani Group to consolidate its position in the cement sector, including the acquisitions of Ambuja and ACC in 2022, Sanghi Industries in 2023, and now Orient Cement.

Following the announcement, Ambuja Cements' share price rose by 2 percent to a high of Rs 583 on the BSE, while Orient Cement’s stock increased by 0.5 percent, reaching Rs 354.20 per share.