Renew Exim DMCC, a Dubai-based Adani Group company, has successfully raised acquisition financing from a group of international investors, including BlackRock, to fund its majority stake acquisition in ITD Cementation India Ltd, the Adani Group said on Wednesday.
The company has completed the open offer process, acquiring 20.81% of ITD Cementation’s equity. In October 2024, Renew Exim DMCC had announced an open offer to acquire an additional 26% stake in ITD Cementation India Limited, following its agreement to purchase a 46.64% stake from the company's promoters, at a price of Rs 571.68 per share. The company said it has made full payment for the tendered shares, and the remaining formalities are underway to complete the acquisition of the promoter stake from Italian-Thai Development Public Company Ltd, as per a share purchase agreement dated October 25, 2024.
Following the completion of the deal, Renew Exim will hold 67.45% of ITD Cementation, gaining a controlling stake in the engineering and construction firm.
In a statement on Wednesday, the Adani Group said, “This acquisition enhances the execution capabilities across our portfolio companies and strengthens our ability to deliver complex infrastructure projects in India. ITD Cementation brings proven expertise and a strong order book, making it a strategic fit as we expand our infrastructure footprint.”
The acquisition was financed through a bond issuance that saw strong participation from global institutional investors. Notably, BlackRock—the world’s largest institutional investor—was among the key participants. According to analysts, the involvement of BlackRock serves as a significant stamp of approval for the Adani Group at a time when the conglomerate is under scrutiny abroad. "BlackRock’s participation signals that some of the largest and most sophisticated investors still see long-term value in the Adani Group’s infrastructure strategy, despite the current regulatory headwinds," said a Mumbai-based analyst who requested anonymity.
In November 2024, U.S. federal prosecutors charged Adani Group Chairman Gautam Adani and seven senior executives with alleged violations of the Foreign Corrupt Practices Act (FCPA). The charges, filed in a New York federal court, accuse the company of paying over $250 million in bribes to Indian officials in exchange for favorable terms on solar energy contracts. Prosecutors also allege that the group concealed these payments from U.S. investors while raising more than $3 billion through international loans and bonds.
Despite the ongoing investigation, the bond issuance attracted significant investor demand, suggesting continued global appetite for Adani-linked infrastructure exposure, particularly in India’s booming construction and EPC sectors.
The Competition Commission of India (CCI) had earlier cleared the acquisition on January 28, 2025. Renew Exim is acquiring up to 72.64% of ITD Cementation for Rs 5,757 crore, including Rs 3,204 crore for the promoter stake and Rs 2,553 crore under the open offer.
ITD Cementation, with a strong presence in marine, metro, airport, and industrial infrastructure, had a consolidated order book of Rs 17,986 crore as of Q2FY25.
At 1:30 pm on Wednesday, ITD Cementation shares were trading 0.38% higher at Rs 534.50 on the BSE, giving it a market capitalisation of Rs 9,192 crore.
The deal marks another significant expansion for the Adani Group in infrastructure and construction. In recent years, the group has completed several high-profile acquisitions, including Holcim’s Indian cement assets in 2022, Penna Cement in June 2024 for Rs 10,422 crore, and Orient Cement in October 2024 for Rs 8,100 crore.
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