Ambuja Cements raises stake in Orient Cement to 72.66%. Details here

Adani Group stock Ambuja Cements has acquired a 26 percent stake in Orient Cement, pushing its total shareholding in the company to 72.66 percent. The strategic acquisition was executed via an open offer under SEBI’s Substantial Acquisition of Shares and Takeovers (SAST) Regulations, 2011, and marks a major consolidation move within the Indian cement sector.

Open Offer Transaction Details

In a regulatory filing dated June 18, 2025, Ambuja Cements disclosed the purchase of 5.34 crore equity shares in Orient Cement at ₹395.40 apiece. This acquisition—amounting to exactly 26 percent of Orient Cement’s total share capital—was conducted through an open offer extended to public shareholders. Prior to this transaction, Ambuja held 9.58 crore shares or 46.66 percent stake in the company. With this latest round of acquisition, its total ownership has risen to 14.92 crore shares, accounting for 72.66 percent of Orient Cement’s equity.

The transaction did not involve any complex financial instruments such as convertible securities, warrants, or pledged shares. Ambuja acquired only direct equity shares with voting rights, making the deal transparent and compliant with regulatory guidelines.

Strategic Importance for Adani Group

The acquisition is part of Ambuja Cements’ long-term expansion strategy and dovetails with the Adani Group’s broader ambitions in the infrastructure and building materials space. By crossing the 70 percent ownership threshold in Orient Cement, Ambuja is expected to gain greater operational control and the ability to drive synergies across manufacturing, logistics, and marketing.

This move comes at a time when the Adani Group is aggressively scaling up capacity through both organic and inorganic routes. With Orient Cement now firmly under its control, Ambuja could leverage its distribution and production capacity more efficiently across regions.

Cement Sector Implications and Analyst Commentary

In a post-deal note, global brokerage Jefferies maintained a bullish stance on Ambuja Cements. “We maintain our ‘Buy’ rating on Ambuja Cement with a target price of ₹700, implying a 29 percent upside from current levels,” the brokerage said. Jefferies also highlighted that management is on track to scale cement capacity to 140 million tonnes per annum by FY28, up from 100 MTPA currently.

“The company is focused on cost efficiencies and expects industry demand to recover to 7-8 percent in FY26,” Jefferies added. According to the management, recent pricing trends have also shown improvement, indicating a more favorable operating environment going forward.

Market Reaction and Stock Movement

Despite the strategic significance of the deal, the market reaction has been mixed. Ambuja Cement shares traded flat on June 19, slipping marginally by less than one percent. The stock is down over 2 percent so far in June.

Meanwhile, Orient Cement has seen significant volatility. After plunging over 16 percent in the previous session, the stock fell another 1 percent in intra-day trading today. For June so far, Orient Cement has tanked nearly 28.5 percent, likely reflecting investor concerns around valuation, open offer pricing, or future integration uncertainties.

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