Adani Group Stock surged 4 percent after its Dubai-based arm, Renew Exim DMCC, raised Rs.1,665 crores from global investors, including BlackRock. The funds will support the acquisition of a controlling stake in an infrastructure major, strengthening Adani’s position in the engineering and construction space.
Share Price Variation
During Friday’s trading session, ITD Cementation India Ltd‘s share price hit an intraday high of Rs.558.35 apiece, rising 4 percent from its previous close of Rs.537.25 apiece. The share has retreated slightly and is currently trading at Rs.535.20 per share. Over the last five years, the shares have delivered over 1,400 percent returns.
Acquisition Details
Renew Exim DMCC, a Dubai-based company under the Adani Group, has raised funds from global investors, including BlackRock, to acquire a majority stake in ITD Cementation India Ltd. The company has already completed the open offer process and acquired 20.81 percent of ITD Cementation.
Earlier, in October 2024, it had announced plans to buy an additional 26 percent stake, after agreeing to purchase 46.64 percent from the company’s promoters at Rs.571.68 per share. Renew Exim has paid in full for the tendered shares, and the final steps are underway to complete the promoter stake acquisition from Italian-Thai Development Public Company Ltd.
Once the deal is finalized, Renew Exim will hold a total of 67.45 percent in ITD Cementation, giving it a controlling stake in the engineering and construction company.
Blackrock Support
The acquisition was funded through a bond issue that attracted strong interest from global investors, including BlackRock. Analysts view BlackRock’s involvement as a major vote of confidence in the Adani Group, especially amid ongoing global scrutiny, highlighting continued belief in its long-term infrastructure strategy.
Management Overview
In a statement on Wednesday, the Adani Group said, “This acquisition enhances the execution capabilities across our portfolio companies and strengthens our ability to deliver complex infrastructure projects in India. ITD Cementation brings proven expertise and a strong order book, making it a strategic fit as we expand our infrastructure footprint.”
Financial Overview
According to its recent financial updates, ITD Cementation India Ltd reported consolidated revenue of Rs.2,245 crores in Q3 FY25, marking a 11.3 percent increase from Rs.2,017 crores in Q3 FY24. Moreover, the company saw a 10 percent increase in net profit to Rs.87 crores, compared to Rs.79 crores in the corresponding period in the previous year.
Ratio Analysis
The company has a Return on Capital Employed (ROCE) of 26.76 percent and a Return on Equity (ROE) of 20.85 percent. Its Price-to-Earnings (P/E) ratio stands at 26.52, higher than the industry average of 19.94. Furthermore, the company maintains a current ratio of 1.36, a debt-to-equity ratio of 0.06, and an Earnings Per Share (EPS) of Rs.20.3.
Written by – Siddesh S Raskar
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