Ambuja Cements’ share price surged over 3% to reach a 52-week high in early trade on Friday following the announcement of its acquisition of Penna Cement Industries Ltd (PCIL) by the Adani Group firm. The shares rallied as much as 3.86% to a new high of ₹690.00 apiece on the BSE.

Ambuja Cements will acquire 100% of PCIL shares from the existing promoter group, Pratap Reddy and family. The acquisition, valued at Rs 10,422 crore, will be fully funded through internal accruals, according to a regulatory filing by the Adani Group cement manufacturer on Thursday.

PCIL has a total cement capacity of 14 million tonnes per annum (MTPA), with 10 MTPA currently operational. The remaining capacity is under construction at Krishnapatnam (2 MTPA) and Jodhpur (2 MTPA), expected to be completed within 6 to 12 months. Additionally, surplus clinker at the Jodhpur plant will support an extra 3 MTPA cement grinding capacity beyond the existing 14 MTPA.

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