ITD Cementation shares jump 20% to upper circuit on Adani Group acquisition news; co clarifies

Promoter ItalianThai Development Public Co held a 46.64 percent stake in ITD Cementation at the close of the June quarter.

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ITD Cementation India's share price jumped as much as 20 percent to upper circuit on Friday, 20 September, following reports that the Adani Group is set to acquire the promoter ItalianThai Development's (ITD) 46.64 percent stake in the company.

ITD Cementation stock rose to as high as 539 soon after open on NSE, and later climbed further to get locked at Rs 565.85 for the day. Adani Enterprises stock was up over 2 percent at Rs 3,004.5 in the late afternoon trade.

The Economic Times reported citing unidentified sources that a successful deal could be worth Rs 5,888.57 crore, and would include a fully subscribed open offer following the stake purchase. The proposed acquisition is aimed at bolstering the Adani Group's civil engineering capabilities.

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The report said that both parties reached an agreement earlier this week, with a formal announcement expected soon.

ITD Cementation later issued a clarification to the stock exchanges, saying: "There is no conclusion with regard to the proposed divestment of ITD’s investments in the company."

ITD Cementation has a market capitalisation of 9,632 crore, as of the last update. Adani Enterprise has a market value of over Rs 3.4 lakh crore.

The promoter, ItalianThai Development Public Co (ITD), held a 46.64 percent stake in ITD Cementation at the close of the June quarter. In July, the company notified stock exchanges that "the promoter shareholders of ITD Cementation India are considering a potential divestment of their holdings."

Should the promoter proceed with the stake sale, it will initiate an open offer for an additional 26 percent of the company's shares.

ITD Cementation India's primary revenue driving business involves maritime structures and engineering projects, including those such as Delhi and Kolkata metro systems.

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