The shares of Ambuja Cements Ltd (ACL) hit a 10-month high on Tuesday tracking the rally in other Adani group shares after the company said it has completed the acquisition of Sanghi Industries Ltd (SIL) at an enterprise value of Rs 5,185 crore.

The ACL scrip shot up 7.22 per cent or Rs 34.25 to close at Rs 508.70 on the BSE after rising 8.20 per cent to hit the day’s high of Rs 513.40. ACL now has a market cap of Rs 1.01 lakh crore.

ACL said it acquired Sanghi Industries at a revised offer price of Rs 121.90 per share.

On August 3, 2023, ACL said it will acquire 56.74 per cent of Sanghi Industries from the promoters by buying 14.65 crore shares at a price of Rs 114.22 apiece.

In a regulatory filing to the stock exchanges, the company said the parties to the share purchase agreement (SPA) have decided to amend the price to Rs 121.90 per share.

It said it has executed a trade on the floor of the stock exchange as well as in off-market to acquire 14.08 crore equity shares of SIL constituting 54.51 per cent from the promoters of the latter at a price of Rs 121.90 per equity share.

The acquisition has been funded by internal accruals.

It added that the remaining 57.56 lakh shares of SIL representing 2.23 per cent will be acquired separately, at the revised price.

Meanwhile, the shares of Sanghi Industries were locked in at the upper circuit of 5 per cent at Rs 129.90 on the BSE which is almost 6.56 per cent higher than the revised offer price. With this, the production capacity of ACL, which also owns ACC Ltd, has increased from 68.5 million tonnes to 74.6 million tonnes.

“ACL will increase its coastal footprint with this acquisition and by increasing capacity to 15 million tonnes across the west coast markets with states of Gujarat, Maharashtra, Karnataka, Kerala at a very competitive cost based on SIL’s strength of low-cost clinker. This additional capacity to be commissioned over next 30 months,” the Adani group firm said.