Adani Group Acquires Sanghi Industries: Deal Worth INR 5,000 Cr Boosts Stock by 5%

Adani Group’s company, Ambuja Cement, has acquired Gujarat-based cement company Sanghi Industries. This deal is valued at 5,000 crore INR. As per exchange filing, Ambuja Cements, Chairman, and Managing Director, Ravi Sanghi, family members, and other promoter entities will transfer 14.66 crore shares of Sanghi Industries Limited, representing 56.74% of total shareholding. After the deal, Sanghi Industries’ shareholding witnessed a 5% increase.

The company will launch an open offer to acquire up to 26% stake or more than 6.71 crore shares of Sanghi Industries at a price of INR 114.22 per share.

Sanghi Industries’ shares have also seen a rise of 5% after this news. The share price reached INR 105.40, marking a 52-week high. Additionally, Ambuja Cement’s stock has witnessed an increase of nearly 3%, reaching INR 474 per share.

As per Gautam Adani, the Chairman of Adani Group, they aim to achieve cement capacity expansion by the year 2028. The company is targeting a cement manufacturing capacity of 140 MTPA (Million Tonnes Per Annum). This strategic acquisition of Sanghi Industries is a step towards becoming the country’s lowest-cost clinker producer.

Sanghi Cement is a brand owned by Sanghi Industries, which was established in 1985. The company has an annual grinding capacity of 6.1 million metric tons and an annual clinker capacity of 6.6 million metric tons. It possesses a 130-megawatt captive thermal power plant, captive mines, water de-salination facility, and a captive port in Kutch, Gujarat, with a cargo handling capacity of 1 MTPA.

Ambuja Cement, a company of the Adani Group, announced its financial results for the first quarter (April-June). During this period, the company’s revenue increased by 18.29% to reach INR 4,729.71 crores. However, the company’s net profit declined by 38.51% from INR 1,048.78 crores to INR 644.88 crores in the first quarter.

Summary: In the first quarter (April-June), Ambuja Cement, a part of the Adani Group, reported a significant increase in revenue, reaching INR 4,729.71 crores, which is a growth of 18.29%. However, the company’s net profit declined by 38.51% during the same period, falling from INR 1,048.78 crores to INR 644.88 crores.