Ambuja Cements experienced a 3% uptick, while Sanghi Industries saw a 5% surge as investors welcomed the acquisition deal between the two companies. Jefferies reported that post-acquisition, Ambuja's capacity has reached 74.6 million metric tonnes per annum (MTPA), with plans to further expand to approximately 100-110 MTPA by FY26/FY27. In a strategic move, Ambuja Cements acquired a 51.68% stake in Sanghi Industries Limited, involving the purchase of 13,34,95,941 equity shares at an average price of Rs 121.9 per share, totalling Rs 1,627.3 crore. Ambuja now holds a controlling stake of 54.51% in SIL. The stake acquisition followed the sale of 13,24,75,741 shares by various promoters of Sanghi Industries. On the second day after the completion of the acquisition, Sanghi Industries and Ambuja Cement stocks continued their positive trajectory, rising by 4.99% and 2.64%, respectively, in morning trade on December 6. As of 9:20 am, Ambuja Cement was trading at Rs 522.50, while Sanghi Industries was at Rs 135.70.
The acquisition drew a favourable response from investors, leading to a surge in both companies' stock prices on December 5, with Sanghi Industries closing 5% higher and Ambuja Cement recording a 7% gain. Jefferies, in response to the development, maintained a "buy" call on Ambuja Cements, setting a target price of Rs 540 per share. The brokerage firm emphasized the strategic significance of the acquisition, projecting that it would elevate Ambuja's capacity and immediate de-bottlenecking opportunities by 1.5 MTPA. Furthermore, Jefferies anticipates a capacity increase to the range of 100-110 MTPA by FY26/FY27, providing Ambuja with a robust foundation for industry-leading volume growth in the medium term.
The dynamics of the stake acquisition involved Ambuja Cements purchasing a significant portion of Sanghi Industries' equity shares from multiple promoters, including Alok Sanghi, Sanghi Industries, Flarezeal Solutions LLP, Ravi Sanghi, Samruddhi Investors Services, Sanghi Polymers, and Aditya Sanghi. This strategic move not only strengthened Ambuja's position in the market but also marked a shift in ownership within Sanghi Industries.
In conclusion, the positive market response to Ambuja Cements' acquisition of a controlling stake in Sanghi Industries underscores the strategic value of the deal. The stock price movements, the subsequent endorsements from brokerage firms like Jefferies, and the projected capacity expansion all contribute to the narrative of Ambuja Cements positioning itself for sustained growth and industry leadership. As both companies navigate this transformative phase, the acquisition is poised to reshape their trajectories and potentially redefine their roles in the competitive landscape of the cement industry.