Renew Exim DMCC, an Adani Group entity controlled by Vinod Adani, will acquire a 46.64% stake in engineering and construction firm ITD Cementation India for ₹3,204 crore. As per SEBI regulations, Renew Exim will also initiate an open offer to acquire an additional 26% stake from public shareholders.
The acquisition, announced late Friday, follows Ambuja Cements’ recent purchase of a 46.8% stake in Orient Cement for ₹8,100 crore. Dubai-based Renew Exim, whose ultimate owners are Vinod Shantilal Adani and Ranjanben Vinod Adani, plans to acquire ITD Cementation’s shares from the current promoter, Italian-Thai Development Public Company Ltd, at ₹400 per share. This price represents a 25% discount to ITD’s closing price of ₹532.80 on the BSE on Friday.
The share purchase agreement (SPA) stipulates adherence to certain conditions and includes clauses on representations, warranties, and indemnities. Additionally, Italian-Thai Development will abide by a non-compete clause for a specified period. For the open offer to public shareholders, however, Renew Exim is proposing a price of ₹571.68 per share, reflecting a 7.3% premium over ITD’s closing price.
Upon completion of this transaction, Renew Exim will assume control of ITD Cementation, and Italian-Thai Development Public Company Ltd will no longer be classified as a promoter. The board will also be restructured to include Renew Exim-nominated directors, while current directors from Italian-Thai Development will step down.
In July, ITD announced that its promoter was considering a stake sale, amid reports of financial challenges faced by the entity. Over the past year, ITD’s share price has risen over 170%. Established in India for nearly 90 years, ITD Cementation is involved in heavy civil, infrastructure, and EPC projects, specializing in areas such as maritime structures, transit systems, airports, hydroelectric power, and more. In FY24, ITD reported revenues of ₹2,279.08 crore, up from ₹1,638.68 crore in the previous year.
