Shares of ITD Cementation rebounded on Monday after crashing as much as 8% during early trade.

What Happened: Renew Exim DMCC, an Adani Group firm controlled by Vinod Adani, has entered a share purchase agreement to acquire more than 8 crore shares, translating to 46.64% of ITD Cementation for ₹3,204 crore.

The company’s promoter Italian-Thai Development Public Company will sell its shares to the Dubai-based Adani firm. If the deal is successful, the former will cease to be a promoter at the firm and the latter will become the new promoter.

See Also: Inox Wind Shares Surge 6% After Robust Q2 Results

Renew Exim DMCC has proposed to further acquire an additional 26% stake in the company at ₹571.68 per equity share bringing the told cost to ₹2,553 crore.

The deal is subject to approval from the Competition Commission of India along with the necessary approval from the seller’s shareholders under relevant Thai law.

The acquisition comes as the Gautam Adani-owned conglomerate seeks to establish itself as a leader in the cement sector. Last week, Ambuja Cements announced it would acquire a 37.9% stake in Orient Cement from the promoters and purchase an additional 8.9% from public shareholders.

Following the acquisition, Ambuja intends to initiate an open offer to acquire an additional 26% stake in the company at the same price. The total deal is valued at ₹8,100 crore.

Price Action: Shares of ITD Cementation were trading flat at ₹529.15 whereas Adani Enterprises shares were up 4.59% at ₹2,817 on Monday afternoon.

Read Next: Ambuja Cements Q2 Net Profit Falls 42% To ₹456 Cr, Shares Jump Nearly 5%