Adani Group's subsidiary, Renew Exim DMCC, has recently announced its agreement to acquire a significant stake in ITD Cementation India. This move involves acquiring 46.64 percent of the stake from ITD Cementation's promoters at a rate of Rs 400 per share, amounting to a total of Rs 3,204 crore. In addition to this transaction, Renew Exim has also made an open offer to purchase an extra 26 percent stake from public shareholders at Rs 571.68 per share, totaling Rs 2,553 crore if fully subscribed.
The decision by Renew Exim to acquire a substantial stake in ITD Cementation comes amidst the exploration by the latter's promoter, Italian-Thai Development Public Company Ltd, to divest its holding in the civil engineering company back in July 2024. ITD Cementation, known for its expertise in engineering and construction projects, has a diverse portfolio ranging from metro systems, maritime structures, mass rapid transit systems, airports, hydro-electric power, tunnels, dams & irrigation, highways, bridges & flyovers to industrial structures and buildings. With ITD Cementation boasting revenues of Rs 7,542 crore and a profit of Rs 274 crore for the financial year 2024, the acquisition is expected to bolster Adani's presence in the civil engineering sector, particularly in key infrastructure projects like airports, highways, and metros.
Apart from the ITD Cementation acquisition, Adani Group has been actively expanding its presence in the sector, as indicated by the recent announcement regarding the acquisition of Orient Cement Ltd (OCL) from CK Birla group firm. Ambuja Cements, a subsidiary of Adani Cement and part of the diversified Adani Group, is set to acquire a 46.8 percent stake in OCL at an equity value of Rs 8,100 crore. This strategic move, fully funded through internal accruals, underlines Adani's commitment to strengthening its foothold in the construction and building materials industry.