Adani Group to Acquire ITD Cementation

Adani to buy ITD Cementation.

Shares of ITD Cementation India surged by over 15% during intra-day trading on Friday, September 20, after reports indicated that the Adani Group has emerged as the frontrunner to acquire the promoter’s 46.64% stake in the company. Based on current market valuations, the potential deal, including a fully subscribed open offer, could be worth ₹5,888.57 crore.

This speculation follows a prior announcement from July 4, 2024, when Italian-Thai Development Public Company Limited (ITD), the majority shareholder of ITD Cementation, disclosed its intention to explore divestment options. However, the process is still in its early stages, and no definitive decision has been made yet.

ITD Cementation’s stock soared by as much as 15.4%, hitting an intra-day high of ₹543.90. With this rise, the stock is now just 8% below its July 2024 peak of ₹589.65. The stock has shown remarkable growth, increasing around 189% from its 52-week low of ₹87.10 in October 2023.

Over the past year, ITD Cementation has delivered strong returns, rallying over 114%. In 2024 alone, the stock has surged by more than 90% year-to-date (YTD), posting gains in 7 out of 9 months. Although the stock has declined by 4% in September, this follows an 8% rise in August.

ITD Cementation reported impressive financial results for the quarter ending June 2024, with net profit jumping 108.5% year-on-year (YoY) to ₹1,001 million, up from ₹480 million in the same period last year. Net sales also increased by 30.0%, reaching ₹23,815 million compared to ₹18,326 million in April-June 2023.

For the fiscal year ending March 2024, the company saw a 119.8% rise in net profit, totaling ₹2,742 million, up from ₹1,247 million in FY23. Revenue also rose by 51.6%, reaching ₹77,179 million during FY24, highlighting the company’s strong performance.

ITD Cementation India Limited, with nearly nine decades of experience in India, is a prominent player in the engineering and construction sector. The company focuses on heavy civil and infrastructure projects, managing a variety of assignments such as maritime structures, mass rapid transit systems, airports, hydroelectric power, highways, bridges, industrial buildings, and specialized engineering projects.