MUMBAI, August 3 (MeelBijendra) – On Thursday 3rd August 2023 Ambuja Cements Limited formerly known as Gujarat Ambuja Cement Limited (GACL) announced that it has acquired 56.74% stake in Sanghi Industries Limited.
Sanghi Industries is in the business of Cement manufacturing in India, established on 14th June 1985 and Sanghi Industries has a network of 850+ dealers and presence in multi-states like Gujarat, Madhya Pradesh, Rajasthan, Maharashtra, and Kerala. Sanghi Industries Limited (SIL) has a cement capacity of 6.1 MTPA (million tonnes per annum) and a clinker capacity of 6.6 MTPA.
Ambuja Cements is a leading Indian cement producer and on 15 May 2022 Adani Group acquired Holcim’s stake in Ambuja Cements and ACC for US$10.5 billion – Holcim held 61.62% stake in Ambuja Cements. Adani Cement became India’s second-largest cement producer after acquiring majority stake in Ambuja Cements and ACC.
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The acquisition of Sanghi Industries will increase the cement capacity of Ambuja Cements to 73.6 MTPA (million tonnes per annum) from the current 67.5 MTPA and the company is targeting 140 MTPA capacity by 2028 and Ambuja will increase the cement capacity at Sanghipuram by 15 MTPA in the next two years.
Indian Adani Group-led Ambuja Cements has acquired Sanghi Industries at an enterprise value of INR 5,000 crore and the company said that Ambuja Cements will use profits from its business to acquire stake in Sanghi Industries. Earlier Adani group acquired 29.18% stake in media company NDTV (New Delhi Television Limited) but Adani indirectly holds this stake in NDTV.
Ambuja Cements has acquired 14,65,78,491 equity shares in Sanghi Industries Limited at a price of INR 114.22 per share, constituting 56.74% of the share capital. Accordingly, as per the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeover) Regulations 2011, If an individual/entity acquires 25% or more stake in a company, it has to make an open offer in the market to acquire an additional 26% stake.
Ambuja Cements made an open offer of up to 6,71,64,760 equity shares at a price of INR 114.22 per share, constituting 26% of the share capital to the public shareholders of Sanghi Industries under the provisions of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeover) Regulations, 2011.
Sanghi Industries has India’s single-location cement and clinker manufacturing unit in Kutch district of Gujarat state in western India and the company’s turnover as on 31 March 2023 is INR 928.36 crore.
The company’s management said that the acquisition of 56.74% stake in Sanghi Industries Limited by Ambuja Cements will be completed within the next 3-4 months while the open offer will be completed as per the provisions of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeover) Regulations, 2011.
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