ITD Cementation India's share price surged more than 14 percent on Friday, 20 September, after reports emerged the Adani Group is in the process of acquiring the promoter's 46.64 percent stake in the company.
The stock of ITD Cementation was up to 539 shortly after the open on the NSE. The stock of Adani Enterprises rose 0.35 percent at Rs 2,953.5
According to an Economic Times report citing unidentified sources, the deal that could fetch Rs 5,888.57 crore would include a fully subscribed open offer after the stake purchase. The Adani Group company is looking to acquire this in order to strengthen civil engineering capabilities.
This report said that both the parties had agreed on this earlier this week and a final announcement is expected soon.
ITD Cementation's market capitalization is at 8,097 crore, latest information available. Adani Enterprise is a company with a value of over Rs 3.3 lakh crore.
ItalianThai Development Public Co, the promoter, holds a 46.64 percent stake in ITD Cementation as of the June quarter-end. July saw the company inform stock exchanges that "the promoter shareholders of ITD Cementation India are considering a potential divestment of their holdings."
If the promoter sells its stake, then it would make an open offer for another 26 percent of shares in the company. The main business of ITD Cementation India in terms of revenue is maritime structures and engineering project constructions. Delhi and Kolkata metro systems are examples.
Disclaimer: The views expressed by investment
experts on Moneycontrol.com are their own and not of this website or its
management. Use the above information in consultation with certified experts
before taking an investment decision.
