Adani Group Targets 46.64% Stake in ITD Cementation India for ₹5,888.57 Crore

the Adani Group announced its intention to acquire a 46.64% stake in ITD Cementation India, a move valued at approximately ₹5,888.57 crore (about $700 million). This acquisition is part of Adani’s broader strategy to enhance its civil engineering capabilities and expand its infrastructure portfolio across various sectors.

Full Details on Adani Group’s Acquisition Plans

The deal will include a mandatory open offer following the purchase of the promoter’s stake in ITD Cementation, which is primarily involved in engineering, procurement, and construction (EPC) projects. The acquisition aligns with Adani Group’s ongoing efforts to strengthen its position in the infrastructure market, particularly in sectors like airports, highways, and real estate.

Background of ITD Cementation India

ITD Cementation India has a rich history dating back to before India’s independence. The company specializes in various construction projects, including maritime and urban development. It has established a strong presence in the Indian market and is known for its expertise in executing large-scale infrastructure projects.

The promoter of ITD Cementation, Italian-Thai Development Public Co., currently holds a 46.64% stake in the company. In July 2024, ITD Cementation informed stock exchanges that its promoters were exploring potential divestment options. This announcement set the stage for discussions regarding the sale of their stake.

Market Reaction

Following the news of Adani Group’s interest, shares of ITD Cementation surged significantly. On September 20, the stock price jumped by over 17%, reaching ₹553.70 during intraday trading. This surge reflects investor optimism about the potential benefits of the acquisition for both companies involved.

Adani Group’s stock also saw a slight increase, trading at around ₹2,975.35 per share at that time. The market capitalization of ITD Cementation was reported to be approximately ₹9,500 crore, indicating the scale of this transaction.

Strategic Implications

This acquisition marks a significant step for Adani Group as it continues to diversify its operations within the infrastructure sector. By integrating ITD Cementation’s capabilities into its portfolio, Adani aims to streamline construction processes and enhance project delivery across its various ventures.

The move is part of a larger trend where Adani Group has been aggressively expanding its footprint through acquisitions. This will be the 11th acquisition by the conglomerate within the year alone. The integration of ITD Cementation will allow Adani to leverage existing expertise in civil engineering and infrastructure development.

Future Developments

While both parties have reportedly agreed on the terms of the deal, an official announcement is still pending. The acquisition will likely be routed through Adani Enterprises Ltd (AEL), which serves as the flagship company for many of Adani’s business endeavors.

The deal also includes an open offer for an additional 26% stake in ITD Cementation at a later date. This aspect of the transaction could further influence market dynamics and investor sentiment as details unfold.

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