Adani Owned Ambuja Cements to Buy Penna Cement for Rs10,422 Crore
Moneylife Digital Team 14 June 2024
Ambuja Cements Ltd from the Gautam Adani-led Adani group will acquire Hyderabad-based Penna Cement Industries Ltd (PCIL) for an enterprise value of Rs10,422 crore. The deal will add 14MTPA (million tonnes per annum) capacity to the country's second largest cement manufacturer.
Ambuja Cements would acquire the 100% from Hyderabad-based PCIL promoter group P Pratap Reddy and family.
The acquisition, to be funded by internal accruals, will improve Adani Cement’s market share pan-India by 2% and by 8% in south India, the company says in a regulator filing.
The deal will increase Adani's market share in cement in southern India and give an entry into Sri Lanka, where Penna Cement operates a unit through a local subsidiary.
Besides, this deal will also provide sufficient limestone reserves to the growth-hungry Ambuja Cement. 
PCIL has 14MTPA cement capacity, of which 10MTPA is operational, and the remaining is under construction at Krishnapatnam (2MTPA) and Jodhpur (2MTPA) and expected be completed within next six to 12 months.
Ajay Kapur, cheif executive officer (CEO) and whole time director of Ambuja Cement says, "The bulk cement terminals (BCTs) will prove to be a game-changer by giving access to the eastern and southern parts of peninsular India, apart from an entry to Sri Lanka, through the sea route."
In FY23-24, the Adani group successfully completed three acquisitions, including Sanghi Industries, Asian Cements and My Home Group’s cement griniding unit (GU) in Tuticorin, as cement capacity increased by 11.4MTPA, taking the total capacity to 78.9MTPA.
Suzlon Energy: Independent Director's Resignation Raises Corporate Governance Concerns
Moneylife Digital Team 10 June 2024
In a worrying development for shareholders of Suzlon Energy Ltd, one of its independent directors, Marc Desaedeleer, resigned from the company's directorship on 8 June 2024, citing dissatisfaction with the corporate governance...
ARCs To See 500-700Bps Higher Recoveries from Residential Realty: CRISIL
Moneylife Digital Team 10 June 2024
Following specific amendments in the Insolvency and Bankruptcy Code (IBC) for real estate projects to aid resolutions, asset reconstruction companies (ARCs) are set to see an increase in the cumulative recovery rate for stressed...
Fraud Alert: Healthcare, Financial, Pharma Are the Most Targeted Industries by Cybercriminals
Yogesh Sapkale, 07 June 2024
While small cybercriminals continue to attack mostly individuals, more sophisticated and resourceful criminals (read: with money power) target industries using malware and ransomware to exploit vulnerabilities in a company's computer...
When a VIP Resigns!
Ranganathan V, 06 June 2024
Discussing a company in the suitcase business appears not ill-timed when a mega election, that would have seen many thousands in operation, just concluded!   
VIP Industries Ltd, which has a ubiquitous presence in almost every...
Free Helpline
Legal Credit