FCC

Ambuja Cements Raises Stake in Orient to 73 Per Cent

2025-06-23

Ambuja Cements, part of the Adani Group, has acquired an additional 26 per cent stake in Orient Cement, increasing its total shareholding to 72.66 per cent. The acquisition was made through an open offer conducted under SEBI’s Substantial Acquisition of Shares and Takeovers (SAST) Regulations, 2011, marking a major consolidation move in the Indian cement industry.

As disclosed in a regulatory filing dated 18 June 2025, Ambuja purchased 53.4 million equity shares of Orient Cement at Rs 395.40 each. Prior to this transaction, it held a 46.66 per cent stake, or 95.8 million shares. With this latest acquisition, Ambuja now owns 149.2 million shares in the company. The deal, valued at approximately Rs 21.1 billion, involved no complex instruments—only direct equity with voting rights—ensuring a transparent and regulation-compliant transaction.

The strategic investment supports Ambuja’s long-term expansion strategy and aligns with the Adani Group’s vision of cement sector leadership. By surpassing the 70 per cent shareholding mark, Ambuja is set to gain greater operational control over Orient Cement and unlock efficiencies in manufacturing, distribution, and marketing.

This acquisition is timely, as the Adani Group is scaling its cement footprint both organically and inorganically. Greater integration of Orient Cement’s capacity is expected to enhance regional market reach and cost structures.

Global brokerage Jefferies reacted positively to the development, reiterating a ‘Buy’ rating on Ambuja Cements with a revised target price of Rs 700, indicating a potential upside of 29 per cent. It cited the company’s plan to scale cement capacity from 100 million to 140 million tonnes per annum by FY28, with a sharp focus on cost efficiency. Jefferies also forecast demand recovery to 7–8 per cent in FY26, alongside stabilising prices.

Despite the deal’s strategic weight, Ambuja’s share price remained mostly flat on 19 June, dipping marginally by under one per cent. The stock is down over 2 per cent month-to-date. Meanwhile, Orient Cement saw significant volatility, falling another one per cent intra-day after a steep 16 per cent drop in the previous session. Overall, Orient’s shares have declined around 28.5 per cent in June, as investor concerns persist regarding deal valuation and future integration dynamics.

The acquisition further solidifies the Adani Group’s hold over the cement sector, strengthening its position to drive scale, improve margins, and deliver long-term value across its growing construction materials portfolio.