Ambuja Cements Initiates Sale of 2% Equity in Sanghi Industries

Ambuja Cements, which acquired Sanghi Industries in 2023, will sell up to 2% of the company’s equity to ensure compliance with minimum public shareholding norms.

Ambuja Cements’ Stake in Sanghi Industries

Ambuja Cements will sell the 2% equity of Sanghi Industries in the open market starting March 13, 2024, till February 6, 2025, or the actual date of completion of the sale of shares. The total equity amounts to 51.66 lakh shares.

In August 2023, Ambuja Cements acquired a 56.74% stake in the Gujarat-based cement company Sanghi Industries Limited (SIL) at an enterprise value of ₹5,000 crore. This acquisition marked the first major deal for the Adani Group since the allegations of financial misconduct by Hindenburg Research.

The promoter group’s remaining 57 lakh equity shares, which represent 2.23% of the company, were acquired separately.

Back then, the company stated that it would make an offer to acquire another 26% from Sanghi Industries Limited’s public shareholders. Which they later began to acquire through the Open Offer. In December 2023, it revised the Open Offer price higher to ₹121.9 per share from ₹114.22 per share.

Sanghi Industries Limited’s cement factory is located in Gujarat’s Kutch region. According to Ambuja Cements, it is the country’s largest single-location cement and clinker unit by capacity. The acquisition also included a captive jetty and a power plant to assist Ambuja Cements in smoothly transporting the commodity to the coastal parts of Karnataka, Maharashtra and Kerala.

About Ambuja Cements

Ambuja Cements Limited is a part of the diversified Adani Group. The company is one of the leading cement companies in India. As of March 2023, the company has 6 integrated cement plants, 8 grinding units and 5 bulk cement terminals. Ambuja Cements has a cumulative manufacturing capacity of 31.45 MTPA. Ambuja Cement, Ambuja Kawach, Ambuja Plus, Ambuja Cool Walls and Ambuja Compocem are some of the few products from Ambuja Cements Limited. On Tuesday, March 12, 2024, the share price of Ambuja Cements closed down by 2.41% at ₹587.55 on the NSE.

About Sanghi Industries Limited

Sanghi Industries Limited is involved in the manufacturing and marketing of cement and cement-related products in local and international markets. The company’s manufacturing facilities are located in Sanghipuram, Gujarat. On Tuesday, March 12, 2024, the share price of Sanghi Industries closed up by 8.41% at ₹108.95 on the NSE.

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.