Ambuja Cements moves up on acquiring Sanghi Industries

Ambuja Cements is currently trading at Rs. 464.95, up by 4.00 points or 0.87% from its previous closing of Rs. 460.95 on the BSE.

The scrip opened at Rs. 464.25 and has touched a high and low of Rs. 466.60 and Rs. 458.60 respectively. So far 104002 shares were traded on the counter.

The BSE group ‘A’ stock of face value Rs. 2 has touched a 52 week high of Rs. 598.15 on 09-Dec-2022 and a 52 week low of Rs. 315.30 on 02-Feb-2023.

Last one week high and low of the scrip stood at Rs. 469.00 and Rs. 448.00 respectively. The current market cap of the company is Rs. 91528.32 crore.

The promoters holding in the company stood at 63.20%, while Institutions and Non-Institutions held 26.86% and 9.94% respectively.

Ambuja Cements has acquired Sanghi Industries (SIL) at an enterprise value of Rs 5,000 crore. ACL will acquire 56.74% shares of SIL from its existing promoter group, Mr Ravi Sanghi & family. The acquisition will be fully funded through internal accruals.

By joining hands with SIL, the company is poised to expand its market presence, strengthen its product portfolio, and reinforce its position as a leader in the construction materials sector. With this acquisition, the Adani Group is well on course to achieve its target of 140 MTPA of cement manufacturing capacity by 2028 ahead of time. With SIL’s limestone reserves of a billion tonnes, the company will increase cement capacity at Sanghipuram to 15 MTPA in the next two years. It will also invest in expanding the captive port at Sanghipuram to handle larger vessels.

SIL’s integrated manufacturing unit at Sanghipuram in Gujarat’s Kutch district is India’s largest single-location cement and clinker unit by capacity. With 2,700 hectares of land, the integrated unit has two kilns with a clinker production capacity of 6.6 MTPA and a cement grinding unit with a capacity of 6.1 MTPA. It has a captive power plant of 130 MW and a Waste Heat Recovery System of 13 MW. The unit is also connected with a captive jetty at Sanghipuram.

The acquisition of SIL will help the company to strengthen its market leadership and increase its cement capacity to 73.6 MTPA from the current 67.5 MTPA. With the ongoing capex of 14 MTPA and with commissioning of 5.5 MTPA capacity at Dahej and Ametha by Q2 of FY24, the Adani Group’s capacity will be 101 MTPA by 2025.

Ambuja Cements is engaged in manufacturing and marketing of cement and clinker for both domestic and export markets. It is a material company of Adani Cement and part of the diversified Adani Group.