adani group Ambuja Cements, a company of , on Thursday announced the acquisition of Penna Cement Industries Limited (PCIL) at an enterprise value of Rs 10,422 crore. The company said in a statement that both the companies have signed a definitive agreement for this acquisition. Under this agreement, Ambuja Cements will buy 100 percent shares of the company from PCIL’s current promoter group P Pratap Reddy and family. The acquisition of Hyderabad-based Penna Cement will increase the cement production capacity of Adani Group by 14 million tonnes per annum.
Total production capacity will increase to 89 million tonnes
With this, the total cement production capacity of Adani Group will be 89 million tonnes per annum. Penna Cement has a production capacity of 14 million tonnes per annum in Andhra Pradesh, Telangana and Rajasthan (under construction). With this, the surplus clinker at its Jodhpur plant will create an additional cement grinding capacity of 3 million tonnes per annum. This acquisition will also strengthen the maritime transport logistics of Adani Group. Under this, five bulk cement terminals will be opened in Kolkata, Gopalpur, Karaikal, Kochi and Colombo to serve peninsular India. According to the statement, this acquisition will increase the all-India share of Adani Group in the cement market by two percent and eight percent in South India.
Ambuja Cement Shares
The share of Adani Group’s cement company Ambuja Cement closed at Rs 664.30 with a fall of 0.63 percent or Rs 4.20. The 52 week high of this share is Rs 680.20. At the same time, the 52 week low is Rs 404. The market cap of the company closed at Rs 1,63,625.29 crore today.
(With inputs from PTI)
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