Ambuja Cements said it will acquire a 37.9% stake in Orient Cement from promoters and buy 8.9% from public shareholders. 

What Happened: Ambuja Cements is set to buy 9.58 crore shares in the company at an average price of ₹395.4. After the acquisition, Ambuja plans to launch an open offer to acquire an additional 26% stake in the company at the same price. The deal is valued at ₹8,100 crore. 

The Adani company said in the regulatory filing that the deal is subject to approval of the Competition Commission of India and will be completed within three to four months. 

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Following the acquisition, Ambuja's operational capacity has increased by 8.5 million tonnes per annum, and the firm has 8.1 million tonnes per annum of capacity under development.

This will take Ambuja Cement's total operational capacity to 97.4 million tonnes per annum, being on schedule to hit the company's target of over 100 million tonnes per annum by March 2025. It is also targeting to reach 140 million tonnes per annum by 2028.

Ambuja Cement's pan India market share will improve by 2% following the deal. 

The acquisition comes after Ambuja Cements bought Penna Cement for ₹10,442 crore from its promoters in June. The company's competitor Ultratech Cement bought a 32% stake in India Cements for ₹3,954 Cr in July. The transaction saw Ultratech Cement increase its stake in India Cements to 55%. 

Price Action: Shares of Ambuja Cement dropped 0.59% to ₹568.50. Shares of Orient Cement fell 0.70% to ₹350. 

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