Adani Group to Acquire 46.64% Stake in ITD Cementation India for Rs 5,888.57 Crore – Boosting Civil Engineering Strength

The Adani Group is set to acquire a 46.64% stake in ITD Cementation India for Rs 5,888.57 crore ($700 million). This deal will strengthen Adani’s civil engineering capabilities. Sources say both parties have agreed, and an official announcement is expected soon.

ITD Cementation India, an engineering and construction company, has its roots in the UK and has changed ownership multiple times. Currently, Italian-Thai Development Public Co owns 46.64% of the company, as of the June quarter. In July, ITD Cementation mentioned that its promoters were exploring a potential sale, but no agreement had been made at that time.

The Adani Group reportedly beat out competitors like Abu Dhabi’s leading dredging company and KEC International from the RPG Group. ITD Cementation is valued at Rs 8,107 crore, and a promoter stake sale would trigger an open offer for an additional 26% stake. The Massachusetts Institute of Technology (MIT) holds a 4.5% stake in the company.

ITD Cementation is a leader in maritime structures and has worked on major projects like the Delhi and Kolkata metro, as well as ports such as Tuticorin, Haldia, and Mundra. The company has also partnered with Adani on several projects, making it a strategic fit.

Earlier this year, ITD Cementation secured a Rs 1,082 crore marine contract for the Dahej LNG Terminal. In February, the company’s management predicted orders worth Rs 8,000-10,000 crore for FY25.

If the deal goes through, it would be Adani Group’s 11th acquisition of the year and would likely be managed through Adani Enterprises Ltd (AEL). AEL is also working on a $10 billion semiconductor plant in partnership with Israel’s Tower Semiconductors in Maharashtra.

The sale of the promoter’s stake is not expected to affect ITD Cementation’s operations. CFO Prasad Patwardhan confirmed that the company is not dependent on its parent for funding or guarantees. Managing Director Jayanta Basu expressed optimism, stating that any new parent would be interested in growing the business.

The company’s order book is valued at Rs 18,536 crore, with nearly half coming from government contracts. ITD Cementation is active across 13 states in India and has projects in Sri Lanka and Bangladesh. In addition to maritime structures, the company specialises in urban infrastructure, metro systems, highways, bridges, and hydroelectric power projects.

The company’s history includes a partnership with the Cementation Co of the UK and Skanska AB, with its current name, ITD Cementation, established in 2005.