The Adani Group has emerged as the frontrunner to acquire a 46.64% stake in ITD Cementation India, a prominent engineering, procurement, and construction (EPC) company. The deal, valued at ₹5,888.57 crore ($700 million), is expected to include an open offer following the promoter stake purchase, according to sources familiar with the matter.
This acquisition would bolster Adani’s in-house civil engineering capabilities, enhancing its infrastructure projects portfolio, which spans airports, highways, ports, power plants, and real estate developments. An agreement between the two parties has been reached, and a formal announcement is expected soon, although independent confirmation is pending.
ITD Cementation’s Legacy and Promoter Stake Sale
ITD Cementation India has its roots in the UK and has changed ownership multiple times. The current promoters, Italian-Thai Development Public Co, held a 46.64% stake as of the June quarter. In July, the company announced it was exploring a potential divestment of the promoter’s stake.
This strategic sale comes amid ITD Cementation’s growth in maritime structures and infrastructure projects like the Delhi and Kolkata metro systems, ports, and hydropower projects. Its extensive order book, which includes a recent marine contract for the Dahej LNG Terminal worth ₹1,082 crore, makes it an attractive acquisition target.
Adani Outpaces Competitors
The Adani Group reportedly outbid rivals, including Abu Dhabi’s leading dredging firm and KEC International, part of the RPG Group. The stake sale will trigger an open offer for an additional 26% stake. Analysts speculate that the final deal may be below market value due to the recent surge in ITD Cementation’s stock price, which has tripled in the past year, gaining 114% over the last year alone.
Notably, the Massachusetts Institute of Technology (MIT) holds a 4.5% stake in ITD Cementation, making the deal even more significant for global investors.
Strategic Fit for Adani’s Expanding Portfolio
ITD Cementation’s leadership in maritime structures—such as wharfs, piers, container terminals, and oil jetties—accounts for 34.5% of its order book, making it a natural fit for Adani, which is already engaged in various maritime and infrastructure projects. Additionally, ITD Cementation has business ties with Adani in hydropower projects, further complementing Adani’s renewable energy ambitions.
The EPC firm is also involved in urban infrastructure, metro systems, highways, bridges, flyovers, and specialized engineering projects, aligning with Adani’s expanding footprint in India’s infrastructure sector.
Adani Group’s Ongoing Expansion
This potential acquisition would mark the Adani Group’s 11th acquisition this year. It is expected to be routed through Adani Enterprises Ltd (AEL), which closed at ₹2,942.35 on the BSE, valuing the company at ₹3.35 lakh crore.
AEL is also making headlines with its partnership with Israel’s Tower Semiconductors to establish a $10 billion semiconductor fabrication plant in Maharashtra, underscoring its aggressive growth strategy in high-tech sectors.
Future Outlook and ITD Cementation’s Position
ITD Cementation’s ongoing operations are unlikely to be affected by the promoter stake sale. CFO Prasad Patwardhan assured analysts in August that the company is not dependent on funding or guarantees from its parent company. Managing Director Jayanta Basu added that any new parent would be interested in expanding ITD Cementation, furthering the company’s growth trajectory.
The company’s robust order book stands at ₹18,536 crore, with government contracts accounting for nearly half. ITD Cementation operates across 13 Indian states, a Union territory, and international projects in Sri Lanka and Bangladesh.
Since its inception, ITD Cementation has established itself as a key player in India’s infrastructure sector, with specialized expertise in maritime, hydropower, urban transport, and industrial projects. Its acquisition by the Adani Group signals a significant step in enhancing India’s infrastructure capabilities and reducing dependency on imports for specialized engineering works.
