Ambuja Cements Surges with Penna Cement Acquisition

Ambuja Cements saw its shares rise nearly 2% on Friday, reaching a 52-week high after announcing the acquisition of Penna Cement Industries for Rs 10,422 crore. The strategic move aims to increase market share and capacity, with the deal being fully funded through internal accruals.

Shares of Ambuja Cements soared nearly 2% on Friday, reaching a 52-week high following the announcement of its acquisition of Penna Cement Industries Ltd for an enterprise value of Rs 10,422 crore.

The stock surged 3.86% to touch a 52-week high of Rs 690 during the trading session on the BSE, closing at Rs 676.95, up by 1.90%. Meanwhile, on the NSE, it climbed 3.68% to reach its 52-week high of Rs 689 in intra-day trading and settled at Rs 673.60, up 1.36%.

This acquisition will boost Adani's market share in southern India and allow entry into the Sri Lankan market. It will also provide vital limestone reserves for Ambuja, which targets a 140 MTPA production capacity by FY28. The acquisition, funded entirely through internal accruals, will elevate Adani Cement's total production capacity to 89 MTPA.