Ambuja Cements Raises Stake in Orient to 73 Per Cent
Cement

Ambuja Cements Raises Stake in Orient to 73 Per Cent

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.

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.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code