The Adani Group's Dubai-based company Renew Exim DMCC to buy a 46.64% stake in engineering and construction company ITD Cementation India from its promoters for a total consideration of Rs 3,204 crore, the company announced in a stock exchange notification, just days after purchasing cement company Orient Cement. As Adani expands into industries including highways, metro projects, and airports, the deal is expected to strengthen its civil engineering expertise.
The stock is currently trading for Rs 549 per equity share.
The Adani Group's Renew Exim DMCC has offered to pay Rs 571.68 per equity share to purchase an additional 26% of the business.
In the past year, ITD Cementation's share price has soared by more than 180 percent, increasing the company's market capitalisation to more than Rs 9,260 crore. Shares of ITD Cementation had previously jumped 20% to the upper circuit on September 20th, on news that the Adani Group was interested in purchasing ITD's stock. The share price of Adani Enterprises had also increased by 2% at that point.
The process was still in its early stages when ITD Cementation announced in July 2024 that its promoter, Italian-Thai Development Public Company Ltd, was considering selling its interest in the civil engineering firm.
ITD Cementation will be taken over by Renew Exim after the deal, and ITD will either step down or cease to be a promoter shareholder. ITD Cementation's board will be reconstituted, with ITD representatives leaving and Adani-nominated directors joining. SEBI rules and other legislative approvals, such as particular non-compete agreements and standstill agreements until the deal is closed, apply to both the sale and the open offer.
ITD Cementation specialised in engineering and building projects; its portfolio includes both maritime constructions and metro systems, including the metros in Delhi and Kolkata. The business has experience in intricate infrastructure projects.
