Market roars as company skyrockets over 7 per cent post successful Rs 5,185 crore acquisition

Company is to increase West Coast capacity to 15 MTPA to cater growing demand and contribute significantly to the nation's infrastructure development

Ambuja Cements Limited is part of the Adani Group and is among India's leading cement companies. Ambuja, with its subsidiary ACC Ltd and Sanghi Industries Ltd has a capacity of 74.6 million tonnes with sixteen integrated cement manufacturing plants and sixteen cement grinding units across the country.

Ambuja Cements Limited (ACL) has successfully completion of the acquisition of Sanghi Industries Limited (SIL). This strategic acquisition, valued at an enterprise value of Rs 5,185 crores. With the acquisition funded entirely through internal accruals, ACL holds a controlling stake of 54.51 per cent in SIL. ACL is committed to leveraging operational synergies resulting from this acquisition to enhance efficiency, reduce costs, and maintain a sustainable approach to cement production.

SIL’s Sanghipuram 2,700-hectare integrated manufacturing unit stands out as India’s largest single-location cement and clinker production facility. SIL has 1 billion tonnes limestone reserves. This acquisition will increases ACL’s consolidated capacity to 74.6 MTPA from 68.5 MTPA. ACL will increase its coastal footprint with this acquisition & by increasing capacity to 15 MTPA across the West Coast markets with states of Gujarat, Maharashtra, Karnataka, Kerala at a very competitive cost based on SIL’s strength of low-cost clinker. This additional capacity to be commissioned over next 30 months.

Yesterday it opened at Rs 475 and closed at Rs 508.70, up by 7.22 per cent. Shares of the company had 52-week high at Rs 598.15 while its 52-week low stands at Rs 315.30. The company currently boasts a market capitalization of approximately Rs 1,01,300 crore.

Disclaimer: The article is for informational purposes only and not investment advice.