Sanghi Capex To Strengthen Ambuja Hold In Western Coastal Markets, Says Karan Adani

The acquisition of Sanghi Industries Ltd. will help Ambuja Cements Ltd. to bolster its presence in the western coastal markets, according to Karan Adani, director, Ambuja Cements.

"Our vision is to produce the lowest-cost clinker in the country at Sanghipuram and then transport this clinker as well as bulk cement through coastal routes to the markets of Saurashtra, south Gujarat, Mumbai and the Mumbai Metropolitan region, Karnataka, and Kerala," Adani said in a video announcement. "Synergies with the assets of Adani Ports will help us in the implementation of this strategy."

Sanghi Industries runs an integrated unit at Sanghipuram in Kutch, Gujarat. The Ravi Sanghi-run company also owns captive limestone reserves of one billion tonne.

"Synergies with the assets of Adani Ports will help us in the implementation of this strategy," Adani said. The captive port at Sanghipuram will be deepened to handle large vessels of 8,000 deadweight tonnage, he said.

Adani Group-owned Ambuja Cements acquired Gujarat-based Sanghi Industries in an all-cash deal, valuing the company at an enterprise value of Rs 5,000 crore. It will acquire 14.66 crore shares of Sanghi Industries—representing 56.74% of the overall shareholding—from promoters.

The cement major will also make an open offer for a 26% stake held by the minority shareholders of Sanghi Industries, or more than 6.71 shares of the company, at Rs 114.22 apiece. This is at a premium of 13.39% from Sanghi Industries' closing price on Wednesday. The acquisition values Sanghi Industries equity at Rs 2,950.6 crore.

The equity value, including the open offer, will be Rs 2,441.37 crore for the overall 82.74% stake, if the open offer is subscribed successfully.

"Ambuja's goal of 140 MTPA capacity by 2028 is well on track, and with this acquisition, we are very confident that we will achieve this ahead of time," Adani said.

Shares of Ambuja Cements were up 2.6% at 10.34 a.m., while Sanghi Industries was locked in the 5% upper circuit at Rs 105.4 apiece. Meanwhile, the NSE Nifty 50 was down 0.25%.