Adani Group can buy 73% stake in this company, the matter is worth Rs 5,759 crore

 
adani group news

Adani Group is looking to buy about 73% stake in ITD Cementation India for Rs 5,759 crore ($685 million), a move that will provide the Gautam Adani-led group with in-house engineering, procurement and construction (EPC) and civil engineering capabilities. 

ReNew Exim DMCC, a wholly-owned offshore unit of the Adani promoter family, has entered into an agreement with ITD Cementation promoter ItalianThai Development Public Company to buy 46.64% stake or 80.1 million shares at Rs 400 per share, aggregating to Rs 3,204 crore.

Why is this deal special for Adani Group?

ITD Cementation said in a stock exchange filing. This will be followed by an open offer to buy an additional 26% or 44.7 million shares from small shareholders at Rs 571.68 per share. 

If the open offer is fully subscribed, the Adani Group will pay around Rs 5,759 crore for a 73% stake in ITD Cementation, a leader in marine structures and engineering works. With this deal, the Adani Group will complete a dozen acquisitions this year alone.

This report revealed

ET was the first to report the Adani-ITD transaction in its September 20 edition. ITD Cementation has worked on the Jawaharlal Nehru Port Trust and ports in Tuticorin, Haldia, Mundra and Vizhinjam, apart from the Delhi and Kolkata metro projects. 

It is seen as a strategic fit for Adani as the latter expands into ports, infrastructure, power and real estate. It already has business ties with Adani in hydropower and marine as well as the 594-km-long Ganga Expressway toll road project.

The stock gave a return of 86 percent in one year

Projects in marine structures such as wharves, container terminals, berths, oil jetties account for 34.5% of ITD Cementation's order book, making it its largest vertical. The company has a market value of around Rs 9,152.8 crore. 

Its stock has gained 86.82% so far this year. In July, the company had told stock exchanges that its promoters were exploring the possibility of possible divestment of their investment, and the sale process was in the initial stages.

These speculations are being made

The Adani Group is believed to have beaten rival bids from KEC International, a leading Abu Dhabi-based dredging company, and RPG Group. ITD Cementation, which has roots in the UK before India's independence, is the result of several mergers and acquisitions and has changed hands several times. 

The company has been operating in India for over nine decades. It has a presence in marine structures, airports, hydroelectric power, tunnels, industrial buildings and structures, highways, bridges and flyovers, and foundations and specialist buildings.

Tags

Share this story