ITD Cementation India experienced a substantial 20% surge in its stock price to Rs 565.85 on the BSE during Friday’s intraday trading session, buoyed by robust trading volumes, following reports of the Adani Group’s interest in acquiring 46.64% stake in the company. The civil construction firm’s shares had previously reached a 52-week high of Rs 589.65 on July 2.
Trading activity on the company’s stock witnessed a seven-fold increase in average volumes, with a total of 8.55 million equity shares – equivalent to nearly 5% of the company’s total equity – being traded on the NSE and BSE.
According to sources familiar with the situation, the Adani Group has positioned itself as the top contender in the competition to procure the promoter’s 46.64% share in ITD Cementation India, aiming to enhance its internal civil engineering expertise. The potential agreement, at present market rates, is estimated to be valued at 5,888.57 crore ($700 million), taking into account a fully subscribed open offer that is expected to ensue subsequent to the acquisition of the promoter’s stake, as reported by The Economic Times.
Currently, the report did not specified the seller, but on July 4, 2024, Italian-Thai Development Public Company Limited (SET: ITD) has announced that it has sent a letter to ITD Cementation India Limited (ITDCEM), a listed company in the National Stock Exchange of India, to notify that the Company, as a shareholder of 46.64% in ITDCEM , is now exploring a possible divestment of its investments in ITDCEM. However, as the process is currently at a preliminary stage, no definitive decision has been taken yet.
ITD Cementation India Limited is one of the leading Engineering and Construction Companies undertaking Heavy Civil, Infrastructure and EPC business and operating in India for nine decades with an established presence and expertise in Maritime Structures, Mass Rapid Transit Systems, Airports, Hydro-Electric Power, Tunnels, Dams & Irrigation, Highways, Bridges & Flyovers, Industrial Buildings and Structures, Foundation & Specialist Engineering.
