Adani Group-owned Ambuja Cement shares jump 7% after Sanghi Industries acquisition | Mint
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Business News/ Markets / Stock Markets/  Adani Group-owned Ambuja Cement shares jump 7% after Sanghi Industries acquisition
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Adani Group-owned Ambuja Cement shares jump 7% after Sanghi Industries acquisition

The share price of Sanghi Industries also hit 5% upper circuit, traded at ₹129.90 per share on Monday.

Ambuja Cement share price surged over 7% on December 5. Photo: Pradeep Gaur/Mint (Pradeep Gaur/Mint)Premium
Ambuja Cement share price surged over 7% on December 5. Photo: Pradeep Gaur/Mint
(Pradeep Gaur/Mint)

The shares of Adani Group-owned Ambuja Cement (ACL) rose nearly 7%, to the day’s high to 510.40 on NSE on Monday’s trading session after the company informed the completion of the acquisition of Sanghi Industries Limited (SIL) on December 5, in an exchange filing to Indian bourses.

Meanwhile, the share price of Sanghi Industries hit 5% upper circuit, traded at 129.90 per share on Monday.

ACL has secured a commanding 54.51% stake in SIL, emphasizing its dedication to harnessing operational synergies from this acquisition. The primary objectives include boosting efficiency, minimizing costs, and fostering a sustainable approach to cement production.

According to the company, SIL's expansive Sanghipuram integrated manufacturing unit spans 2,700 hectares, standing as India's largest single-location cement and clinker production facility. The facility features two kilns with a clinker production capacity of 6.6 million metric tons per annum (MTPA), alongside a dedicated 13 MW captive power plant and a 13 MW Waste Heat Recovery System.

Leveraging its extensive billion-tonne surface mining limestone reserves, the acquisition of SIL will strategically position ACL to accelerate its coastal expansion plans. The objective is to enhance cement capacity to 15 million metric tonnes per annum (MTPA) along the West Coast, leveraging SIL's cost-effective clinker, the company said in a statement.

"This acquisition represents a significant step forward in our journey solidifying Adani Group’s leadership position in India's cement industry," said Ajay Kapur, CEO, Cement Business.

Kapur further added, “It strengthens our commitment to delivering high-quality products and services to our customers while contributing to India's infrastructure development. We welcome the employees of Sanghi Industries into the Adani family and look forward to capitalizing on the synergies this acquisition offers."

Not only Ambuja but also other stocks within the Adani Group displayed robust gains in trading. A remarkable surge of 30% in just two sessions propelled the market capitalization of Adani Group stocks beyond the 12 lakh crore threshold on Tuesday.

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Published: 05 Dec 2023, 06:21 PM IST
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