Ambuja Cements Limited, an Indian cement company, has acquired a significant stake in Orient Cement Limited (OCL). Following the approval of the acquisition by Ambuja's board of directors on October 22, 2024, the company has now acquired 9,58,73,163 equity shares of OCL, representing 46.66% of OCL's existing share capital.
This acquisition is part of Ambuja Cements' strategic move to strengthen its market position. The transaction includes purchasing 7,76,49,413 equity shares, constituting 37.79% of OCL's existing share capital, and an additional 1,82,23,750 equity shares, accounting for 8.87% of the company's shareholding.
Earlier, Ambuja also announced an open offer to acquire up to 5,34,19,567 equity shares, amounting to 26% of OCL's expanded share capital, at a price of Rs 395.40 per share. This offer was made to OCL's public shareholders in accordance with the Securities and Exchange Board of India (SEBI) regulations.
The acquisition comes after OCL's recent allotment of 3,49,976 fully paid-up equity shares, increasing its paid-up capital to Rs 20,54,59,873. With this strategic acquisition, Ambuja Cements continues to enhance its foothold in the Indian cement sector, reaffirming its commitment to expanding its portfolio and offering superior products.
This development is expected to boost both companies' market competitiveness, with Ambuja Cements now holding a dominant stake in OCL. The company has confirmed that it will comply with all necessary regulations under SEBI's Substantial Acquisition of Shares and Takeovers Regulations, 2011, as it proceeds with the open offer.
