Ambuja Cement to Acquire Orient Cement for ₹8,100 Crore, Plans to Buy More Shares Through Open Offer

Ambuja Cement has announced its decision to acquire Orient Cement Ltd (OCL) at an equity value of ₹8,100 crore, as per a binding agreement signed between the two companies. This acquisition marks a significant step in Ambuja’s strategic growth in the cement sector. Additionally, the company will launch an open offer to acquire an additional 26% stake in Orient Cement.

In a statement, Ambuja Cement mentioned, “Within 3-4 months, the Open Offer shall be completed in accordance with the provisions of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations (SAST).” The open offer price has been set at ₹395.40 per equity share, determined in line with the SAST regulations. This move aims to increase Ambuja’s ownership in Orient Cement, enabling it to strengthen its position in the market.

At the time of the announcement, Ambuja’s shares were trading up by 1.49% at ₹580 as of 9:20 am, signaling a positive market response to the acquisition news.

The acquisition involves Ambuja purchasing 46.8% of Orient Cement’s shares from its current promoters and certain public shareholders. This transaction will be fully funded through internal accruals, without the need for external financing.

Karan Adani, Director of Ambuja Cements, highlighted the strategic significance of the acquisition. He stated, “This timed acquisition marks another significant step forward in Ambuja Cements’ accelerated growth journey, increasing our cement capacity by approximately 30 million tonnes per annum (MTPA) within two years of Ambuja’s acquisition.”

By acquiring Orient Cement, Ambuja Cement is on track to reach a cement production capacity of 100 MTPA by FY25, significantly enhancing its ability to meet growing demand. This acquisition is also expected to boost Adani Cement’s market presence, especially in key regions, and improve its overall market share by 2% across India.

Orient Cement’s assets are noted for their efficiency, featuring railway sidings, captive power plants, renewable energy sources, Waste Heat Recovery Systems (WHRS), and Alternate Fuel Resources (AFR) facilities. Moreover, Orient Cement’s strategically located plants and high-quality limestone reserves present opportunities for Ambuja to further expand its cement capacity in the near term to 16.6 MTPA.

The acquisition is seen as a pivotal move that will further strengthen Adani Group’s position in the cement sector, giving Ambuja Cement greater leverage in key markets while also enhancing operational efficiency through Orient Cement’s strong infrastructure and resource base.