Conglomerate Adani Group, headed by billionaire Gautam Adani, said on Tuesday it will acquire Orient Cement Ltd at a valuation of Rs 8,100 crore as part of its expansion drive.
Ambuja Cements, the cement and building material company of Adani Cement, has signed a binding agreement for acquiring Orient Cement Ltd at an equity value of Rs. 8,100 crore.
As per its unit, "Ambuja will acquire 46.8% shares of OCL from present promoters as well as some public shareholders," said a joint statement. This acquisition will be fully funded through internal accruals, it added.
The latest acquisition will add 16.6 MTPA capacity to Adani Cement, which operates in the cement sector through Ambuja Cements.
In June this year, the company said it has acquired Hyderabad-based Penna Cement at an enterprise value of Rs 10,422 crore, bringing in 14 million tonnes per annum capacity to the country's second-largest manufacturer.
"This timed acquisition marks another big step forward in Ambuja Cements' accelerated growth journey, increasing cement capacity by ~30 MTPA within two years of Ambuja's acquisition," said Karan Adani, Director of Ambuja Cements.
Ambuja Cement is on course to touch a cement capacity of 100 MTPA in FY25, after acquiring OCL. "The acquisition will also add to the expanded presence of Adani Cement in core markets and enhance its pan-India market share by 2 per cent."
OCL has 5.6 MTPA clinker capacity and 8.5 MTPA cement capacity, along with the statutory clearance to increase the clinker capacity by another 6.0 MTPA and cement capacity by another 8.1 MTPA.
Read also| Zepto CEO Praises Modi Govt for Boosting Growth of Start-ups
Read also| Jindal Stainless Reports 20% Drop in Net Profit to Rs 609.42 Cr for September Quarter
