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New Delhi: Adani Group’s Renew Exim DMCC has signed an agreement to acquire a 46.64 per cent stake in ITD Cementation India, an engineering and construction company, from its promoters for Rs 3,204 crore. The transaction involves the purchase of 80.1 million shares at a price of Rs 400 per share, according to a stock exchange filing by the company. This acquisition will help the Gautam Adani-led conglomerate strengthen its in-house engineering, procurement, and construction (EPC) and civil engineering capabilities.
Following this, Adani Group will make an open offer to buy an additional 26 per cent stake from minority shareholders. The offer price is set at Rs 571.68 per share, which could increase the total acquisition cost to about Rs 5,759 crore if the offer is fully accepted.
Adani Group's Expansion
This acquisition adds to Adani Group’s rapid expansion this year, marking its 12th acquisition in 2024. ITD Cementation, known for its expertise in maritime structures and engineering, has completed significant projects, including work at Jawaharlal Nehru Port Trust and the Delhi and Kolkata Metro systems.
It also holds existing business ties with Adani Group through projects in hydropower, marine infrastructure, and the 594-km Ganga Expressway toll road. Maritime structures such as wharfs, oil jetties, container terminals, and berths account for 34.5 per cent of ITD Cementation’s order book.
The stock of ITD Cementation has performed well ahead of the acquisition news, rising 86.82 per cent year-to-date as investors anticipated the sale. In July 2024, the company disclosed that its promoters were exploring a potential divestment, though the process was in the early stages.
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About ITD Cementation
ITD Cementation India is a leading engineering and construction firm with a diverse portfolio that includes metro systems, maritime structures, airports, and mass rapid transit systems. The company has also delivered projects across sectors such as hydro-electric power, tunnels, dams, irrigation, highways, bridges, flyovers, as well as industrial structures and buildings.
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