Ambuja Cements shares surge 2% after company acquires Penna Cement for ₹10,422 crore

Shares of Adani-owned Ambuja Cements jumped after the company announced its acquisition of Hyderabad-based Penna Cement Industries Ltd (PCIL) for ₹10,422 crore. Ambuja Cements will acquire 100% of PCIL’s shares from its current promoter group, P Pratap Reddy and family, with the acquisition funded by internal accruals.

PCIL boasts a capacity of 14 million tonnes per annum (MTPA) spread across Andhra Pradesh, Telangana, and Rajasthan (under construction). This acquisition will increase Ambuja Cements’ total capacity to 89 MTPA, aiding the company in reaching its target of 140 MTPA by 2028.

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Ajay Kapur, CEO and Whole Time Director of Ambuja Cements, said, “By acquiring PCIL, Ambuja is poised to expand its market presence in South India and reinforce its position as a pan-India leader in the cement industry. PCIL’s strategic location and sufficient limestone reserves provide an opportunity to increase cement capacity through debottlenecking and additional investment.”

Following the announcement, Ambuja Cements’ shares were trading 1.87% higher at ₹676.90 on the NSE as of 11:53 AM.