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

Ambuja Cements Ltd., the Adani Group company will be acquiring a controlling stake in Orient Cement Ltd. for an equity value of ₹8,100 crore, it said in an exchange filing on Tuesday, October 22.

NSE The acquisition will add 16.6 MTPA capacity, which includes operational capacity of 8.5 MTPA and an additional 8.



1 MTPA which is ready to be executed, to Ambuja's overall capacity. The deal will also provide Ambuja Cements potential additional capacity of 6 MTPA in North India, leveraging Orient Cement's high quality limestone reserves in Rajasthan. Ambuja will first acquire 46.

8% stake in Orient Cement from its current promoters and existing shareholders. The acquisition will be funded entirely through internal accruals, and the company will remain debt free. The acquisition will be done at a price of ₹395.

4 per share, which is a 12% premium to Monday's closing price for shares of Orient Cement. Shares of Orient Cement have rallied in 24% in the last six trading sessions, including that of Tuesday. This is a developing story.

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