In the early hours of January 8, ACC shares experienced a two percent decline as the cement giant successfully concluded the acquisition of Asian Concretes and Cements Private Limited (ACCPL) for a total consideration of Rs 775 crore.
As a subsidiary of Ambuja Cement, ACC had initially held a 45 percent stake in Asian Concretes and Cements. With the recent purchase of the remaining 55 percent stake from its promoter, ACC now stands as the sole proprietor of ACCPL, with the cost of the outstanding stake amounting to Rs 425.96 crore.
Shares of ACC were trading at Rs 2,351 apiece as of 10:15 am, marking a 1.11 percent decrease on the NSE compared to the previous session’s closing price.
ACCPL, boasting a cement capacity of 1.3 MTPA in Nalagarh (Himachal Pradesh), and its subsidiary, Asian Fine Cements Pvt Limited (AFCPL), with 1.5 MTPA cement capacity in Rajpura (Punjab), are now under complete ownership of ACC.
“The entire acquisition is funded through internal accruals and will help ACC & its parent company Ambuja to further bolster market leadership in the lucrative North India market,” stated the company in a filing with the bourses.
This strategic acquisition enhances ACC’s cement capacity and contributes to achieving the overarching target of 140 MTPA capacity for Adani’s Cement Business by 2028. Additionally, the Rajpura plant’s added 1.5 MTPA capacity will effectively serve a customer base spanning three states – Himachal Pradesh, Haryana, and Punjab.
