Ambuja Cements, an Adani Group company, has made a Rs 767-crore open offer to acquire up to 6.71 crore equity shares or 26 per cent stake of Sanghi Industries shares at ₹114.22 a piece.
The offer follows Ambuja Cements acquiring 56.74 per cent shares of SIL at an enterprise value of Rs 5,000 crore from its existing promoter group, Ravi Sanghi & family.
Ambuja Cements has proposed to fund the deal through internal accruals.
Ambuja Cements will also pump in Rs 300 crore as inter corporate deposit agreement to meet the general corporate purposes of Sanghi Industries.
Gautam Adani, Chairman of the Adani Group, said the deal will help Ambuja 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 on course to achieving its target of 140 MTPA of cement manufacturing capacity by 2028, ahead of time.
With SIL’s limestone reserves of a billion tonnes, ACL will increase cement capacity at Sanghipuram to 15 MTPA in the next two years. ACL will also invest in expanding the captive port at Sanghipuram to handle larger vessels to make SIL the lowest cost producer of clinker in the country, he said.
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 enhance Ambuja Cements capacity to 73.6 MTPA from 67.5 MTPA. With a 14 MTPA capex and the 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.