Ambuja Cements shares settle nearly 2 pc higher; market valuation up by Rs 3,115.85 cr

New Delhi, Jun 14 (PTI) Shares of Ambuja Cements on Friday ended nearly 2 per cent higher to hit the 52-week high level during the day after the company announced the acquisition of Penna Cement Industries Ltd 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 during the day on the BSE. It ended at Rs 676.95 apiece, up 1.90 per cent.

On the NSE, it climbed 3.68 per cent to Rs 689 -- its 52-week high -- in intra-day trade. Shares of the company ended at Rs 673.60, up 1.36 per cent.

The company's market valuation went up by Rs 3,115.85 crore to Rs 1,66,741.14 crore.

On Thursday, Ambuja Cements, an Adani group firm, announced the acquisition of Penna Cement Industries Ltd (PCIL).

The deal will increase Adani's market share in cement in southern India and give entry into Sri Lanka, where PCIL 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 will acquire 100 per cent shares of PCIL from its existing promoter group P Pratap Reddy and family, a statement said.

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," Ambuja Cements said. PTI SUM SUM SHW