Adani Group’s Renew Exim buys 46.64% stake in ITD Cementation

ITD Cementation India Ltd. was founded in India in 1931 as a division of The Cementation Company Ltd. UK, a part of the London-based Trafalgar House Group, to perform extensive drilling and grouting work on hydraulic structures that were then expanding quickly. Since then, the company has been diligently working to strengthen India and has amassed a wealth of knowledge in the field of infrastructure development. ITD Cementation specializes in engineering and construction projects; its portfolio includes mass rapid transit systems, tunnels, irrigation, dams, highways, bridges, flyovers, industrial buildings, airports, metro systems, and maritime structures.

An agreement has been reached for Renew Exim DMCC to purchase a 46.64% share in ITD Cementation India

In a stock exchange announcement, the Adani Group company Renew Exim DMCC said it had reached a deal to buy a 46.64% share in the engineering and construction company ITD Cementation India from its promoters for Rs 3,204 crore for Rs 400 per share. This purchase coincides with Renew Exim’s open offer to buy a further 26% of ITD Cementation from public shareholders for Rs 571.68 per share, or Rs 2,553 crore if fully subscribed.

Promotors of ITD Cementation wish to sell their stake

In July 2024, ITD Cementation announced that its promoter, Italian-Thai Development Public Company Ltd, was considering selling its interest in the civil engineering firm; at that time, the process was still in its early stages. As Adani expands into industries like highways, metro projects, and airports, the recent acquisition is expected to strengthen its civil engineering capabilities.

ITD Cementation finance for 2024

ITD Cementation reported Rs 7,542 crore in revenue and Rs 274 crore in profit for the fiscal year 2024. As part of its expansion drive, the Adani-led Adani Group announced earlier on October 22 that it would buy Orient Cement, a company owned by the CK Birla group, for Rs 8,100 crore.

The stock of ITD Cementation India Ltd. dropped 3% today

The current intraday price of ITD Cementation India Ltd.’s stock is Rs. 519.65, down nearly 3%. The stock’s low price is Rs. 491.10, while its highest price to date is Rs. 540 per share.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.