Shares of Ambuja Cements on Friday climbed nearly 4 per cent to hit the 52-week high level after the company announced acquisition of Penna Cement Industries Ltd (PCIL) for an enterprise value of Rs 10,422 crore.
The stock jumped 3.86 per cent to hit its 52-week high of Rs 690 on the BSE.
On the NSE, it climbed 3.68 per cent to Rs 689 -- its 52-week high.
Ambuja Cements, an Adani group firm, on Thursday announced the acquisition of Penna Cement Industries Ltd.
The deal will increase Adani's market share in cement in southern India and give an entry into Sri Lanka, where Penna Cement Industries Ltd operates a unit through a local subsidiary.
Besides, this deal will also provide sufficient limestone reserves to the growth-hungry Adani group firm, which is aspiring to achieve a 140 MTPA (million tonne per annum) capacity by FY28.
A binding agreement for the acquisition has been signed and Ambuja Cements, an Adani group firm, will acquire 100 per cent shares of PCIL from its existing promoter group P Pratap Reddy and family, said a statement.
After the acquisition, the total production capacity of Adani Cement would climb up to 89 MTPA, it added.
"This acquisition will be fully funded through internal accruals," said Ambuja Cements.
