Vikrant Shekhawat : Oct 28, 2024, 06:00 AM
Gautam Adani News: Adani Group, a leader in infrastructure development in the country and the world, plans to buy a 73% stake in ITD Cementation India. The acquisition for Rs 5,759 crore (about $685 million) will provide the group with in-house engineering, procurement and construction (EPC) as well as civil engineering capabilities. Led by Gautam Adani, the group is considering this deal as an important step to further strengthen its business diversity.Agreement with ITD Cementation: Key terms of acquisitionFor this acquisition, Renew Exim DMCC, a wholly-owned unit of the Adani promoter family, has signed an agreement to buy 46.64% stake (80.1 million shares) from Italian Thai Development Public Company, the promoter of ITD Cementation, at a rate of Rs 400 per share. The value of this stake is Rs 3,204 crore.After this, Adani Group will make an open offer for an additional 26% stake from small shareholders at Rs 571.68 per share, paving the way for acquiring up to 73% stake in the company. If the open offer is completed, the total investment of Adani Group after this acquisition will reach Rs 5,759 crore.Why is this deal special for Adani Group?ITD Cementation has been a significant contributor to Indian infrastructure. The company has worked in Delhi and Kolkata Metro projects, Jawaharlal Nehru Port Trust and port development projects in Mundra, Tuticorin, Haldia, and Vizhinjam. This acquisition will strengthen the infrastructure projects of Adani Group and give it a competitive advantage in ports, infrastructure, energy and real estate sectors.ITD Cementation has stated in its filing that after this acquisition, Adani Group will get extensive support in projects like marine structures, hydropower, and expressway construction.ITD Cementation stock performance and future prospects34.5% of ITD Cementation's order book comes from marine structures projects, making it its largest vertical. This includes important projects such as wharves, container terminals, berths, and oil jetties. ITD Cementation shares have gained 86.82% this year, and the company's market value has reached about Rs 9,152.8 crore. In July, the company had said that the promoter group was considering options to potentially sell its investment, making this acquisition possible by Adani.Adani's victory in competition and acquisitionIn this deal, Adani Group has defeated competing bids from a leading dredging company in Abu Dhabi and KEC International of India's RPG Group. The company has been active in India for 90 years and has made its mark in marine structures, airports, highways, tunnels, hydropower projects, and industrial construction sectors.A new chapter in Adani's acquisitionsThis acquisition will prove to be another strategic move for the Adani Group this year. This year, the Adani Group has made several acquisitions, strengthening its leading position in infrastructure, construction and industrial development. The acquisition of ITD Cementation will empower Adani's extensive ecosystem with technological strength and industry expertise, providing a significant boost to the Group in achieving its long-term growth goals.