Ambuja Cements to acquire Orient Cement at ₹8,100 crore equity value

Ambuja will acquire 46.8% shares of OCL from its current promoters and certain public shareholders. The acquisition will be fully funded through internal accruals. 

“This timed acquisition marks another significant step forward in Ambuja Cements accelerated growth journey, increasing cement capacity by ~30 MTPA within two years of Ambuja’s acquisition,” said Mr. Karan Adani, Director of Ambuja Cements.

“By acquiring OCL, Ambuja is poised to reach 100 MTPA cement capacity in FY 25. The acquisition will help to expand Adani Cement’s presence in core markets and improve its pan-India market share by 2%. OCL’s assets are highly efficient, equipped with railway sidings, and well supported by captive power plants, renewable energy, WHRS, and AFR facilities. OCL’s strategic locations, high-quality limestone reserves, and requisite statutory approvals present an opportunity to increase cement capacity in the near term to 16.6 MTPA," the company added.

Shares of Ambuja Cements after the announcement were trading nearly 1.5% higher at ₹580.10 apiece on the BSE. Orient Cement stock was trading nearly 2.5% higher at ₹360.90 in the opening deals. 

The latest acquisition will add 16.6 MTPA (million tonne per annum) capacity to Adani Cement, which operates through Ambuja Cements in the sector.

In June this year, Adani Group announced the acquisition of Hyderabad-based Penna Cement at an enterprise value of ₹10,422 crore, which added 14 MTPA capacity to the country's second largest manufacturer.