Adani group's Dubai-based firm to buy ITD Cementation for Rs 3,204 cr

Within days of acquiring cement firm Orient Cement, the Adani Group’s Dubai-based firm Renew Exim DMCC has entered into an agreement to acquire 46.64 per cent stake in engineering and construction firm ITD Cementation India from its promoters at a total consideration of Rs 3,204 crore, the company announced in a stock exchange notification.

 

The Adani group firm will make an open offer for the company.

 

With this transaction at Rs 400 a share, the present promoter Italian-Thai Development Public Company will cease to be a promoter of the company and Adani group's Dubai-based firm, Renew Exim DMCC will be the new promoter -- subject to all government clearances. 

 

 

Renew Exim DMCC, owned by billionaire Vinod Adani, elder brother of Adani group Chairman Gautam Adani, will make an open offer to acquire a further 26 per cent stake at Rs 571.68 a share as compared to ITD Cementation’s closing of Rs 532 a share as on Friday. The open offer will cost Rs 2,553 crore -- provided all shareholders tender their shares in the open offer.

 

On October 22, Ambuja Cements, a Adani family owned firm, had announced its third acquisition in the last one year, with a binding agreement to acquire a 46.8 per cent stake in the C K Birla family-owned Orient Cement for an equity value of Rs 8,100 crore. Ambuja had earlier acquired a majority stake in Sanghi Cement in December and in August this year it bought Penna Cement. The group had made a high-profile entry into the cement industry by buying Ambuja Cement and its subsidiary ACC for $6.5 billion in 2022.

 

ITD Cementation India is an engineering and construction companies undertaking heavy civil, infrastructure and EPC business and operating in India for nine decades with an established presence and expertise in maritime structures, mass rapid transit systems, airports, hydro-electric power, tunnels, dams & irrigation, highways, bridges & flyovers, industrial structures and buildings. For financial year 2024, it reported revenues of Rs 7,542 crore and profit of Rs 274 crore.

 

The Orient acquisition has added 16.6 million tons annual cement capacity for the group which now has 100 mtpa of capacity. The acquisition has also escalated the race between Adani and India's number one cement firm, UltraTech Cement, owned by Kumar Mangalam Birla.

 

Ultratech has a capacity of 150 mtpa and plans to raise capacity to 200 mtpa by 2027. Ambuja also plans to raise capacity to 150 mtpa in the same period.