Adani Group Going to buy another cement company. According to the information received, Adani Group company Ambuja Cements is going to make this acquisition. Ambuja Cements will acquire the cement ‘grinding’ unit of My Home Group in Tuticorin, Tamil Nadu for a total consideration of Rs 413.75 crore. Ambuja Cements, part of the Adani Group, said in a statement on Monday that it has signed a definitive agreement to acquire the cement ‘grinding’ unit of My Home Group. The capacity of the unit is 1.5 MTPA.
Will help in increasing market share
According to the statement, the acquisition through internal accruals at a total consideration of Rs 413.75 crore will help the company expand its coastal reach in the southern markets of Tamil Nadu and Kerala. Ajay Kapoor, chief executive officer (CEO) of Adani Group’s cement business, said that apart from infrastructure and geographical advantages, Ambuja Cements will also get the existing dealer network. The company will retain current employees to help ensure a smooth transition.
Invested Rs 6,661 crore in Ambuja Cements
Recently Adani Group had announced an investment of Rs 6,661 crore in Ambuja Cements. With this, its stake in the country’s second largest cement company has increased by 3.6 percent to 66.7 percent. The board of directors of Ambuja Cements has approved the conversion of 21.20 crore warrants into shares of the promoter entity Harmonia Trade and Investment at the rate of Rs 314.15 per share. The investment will be crucial for the Adani Group’s cement business, which plans to expand its capacity to 140 million tonnes per annum by 2028, Ambuja Cements, owned by industrialist Gautam Adani, said in a statement. Earlier, the promoter Adani family had invested Rs 5,000 crore in the company for the issue of warrants approved by the board of directors in October 2022.
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