Shares of Sanghvi Industries were locked in an upper circuit of 5% at Rs 129.90. With the acquisition funded entirely through internal accruals, ACL holds of 54.51% in SIL. SIL?s Sanghipuram unit is India?s largest single-location cement and clinker unit by capacity, potentially the lowest cost cement producer in the country with a captive jetty and power plant. The acquisition increases ACL?s consolidated capacity to 74.6 MTPA from 68.5 MTPA. ACL will increase its coastal footprint with this acquisition & by increasing capacity to 15 MTPA across the west coast markets with states of Gujarat, Maharashtra, Karnataka, Kerala at a very competitive cost based on SIL?s strength of low cost clinker. This additional capacity is to be commissioned over next 30 months. Ajay Kapur, CEO, cement business said, ?Recognizing the Adani Group's expertise in marine infrastructure, plans are underway to expand the Sanghipuram port's capacity to handle larger vessels, facilitating cost-effective transportation of clinker and cement via sea routes.? Meanwhile, Ambuja Cements will acquire an additional 2.23% stake in Sanghi Industries for Rs 121.90 per equity share, revised from Rs 114.22 determined on 3 August 2023. Further, the company has executed ICD amendment agreement with SIL on 2 December 2023 between to amend the terms and conditions of the ICD agreement and provide for the lending of additional funds of up to Rs 1,810 crore to SIL for the repayment of outstanding amounts in relation to the credit facilities availed by SIL. Sanghi Industries is engaged in the manufacturing and marketing of cement and cement products in domestic and export market. Ambuja Cements is a major cement producing company in India. The principal activity of the company is to manufacture and market cement and clinker for both domestic and export markets. Powered by Capital Market - Live News |