Ambuja Cements

Shares of Ambuja Cements hit a new high on Friday’s trade following the acquisition of Penna Cement.

Consolidation in the cement industry continues, with Adani-owned Ambuja Cements announcing a 100 per cent acquisition of Hyderabad-based Penna Cements Industries Limited (PCIL) for an Enterprise value of ₹10,422 crore. With an operational and to be commercialised capacity of 14 million tonnes per annum (mtpa), the PCIL deal is valued at $89 per tonne, which is marginally below the replacement cost of $90-100 per tonne for similar capacities. Ambuja can increase its Southern market share with the deal, which can be value-accretive if the expansion pans out.

Adani Group stocks rallied on Monday’s early trade after exit polls predicted a massive win for the BJP-led NDA in the Lok Sabha polls.

BSE Sensex rose by 229.47 pts or 0.32 per cent to trade at 73,005.60 as of 12.35 pm; and Nifty 50 was up 84.65 pts or 0.38 per cent at 22,188.70.