Industrialist Gautam Adani (File Photo: PTI)
Adani Group is looking to buy around 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 engineering capabilities. civil. . Renew Exim DMCC, the wholly-owned offshore unit of the Adani family of promoters, has entered into an agreement with Italianthai Development Public Company, the promoter of ITD Cementation, to buy a 46.64% stake or 80.1 million shares from 400 rupees per share, amounting to Rs 3,204 crore.
Why is this deal special for Adani Group?
ITD Cementation said in a statement to the stock exchange. After this, there will be 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, 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, Adani Group will complete the goal of making a dozen acquisitions this year alone.
Revealed in this report
ET was the first to report on the Adani-ITD transaction in its September 20 edition. ITD Cementation has worked on Delhi and Kolkata Metro projects besides Jawaharlal Nehru Port Trust and Tuticorin, Haldia, Mundra and Vizhinjam ports. It is considered a strategic option for Adani as the latter expands into ports, infrastructure, energy and real estate. It already has business ties with Adani in hydropower and marine power as well as the 594-kilometre Ganga Expressway toll road project.
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Marine structure projects such as docks, container terminals, berths and oil jetties constitute 34.5% of ITD Cementation’s order book, making it its largest vertical. The market value of the company is around Rs 9,152.8 crore. Its shares have increased 86.82% so far this year. In July, the company had informed the stock exchanges that its promoters were exploring a possible divestment of their investments and that the sale process was in the initial phases.
These speculations are being made
Adani Group is believed to have beaten rival bids from KEC International, a major Abu Dhabi dredging company, and RPG Group. ITD Cementation, which has its roots in the United Kingdom before India’s independence, is the result of several mergers and acquisitions and has changed hands several times. The company has been working in India for nine decades. It is present in marine structures, airports, hydroelectric plants, tunnels, industrial structures and warehouses, highways, bridges and overpasses, and specialized foundations and buildings.
