Adani Group Eyes ITD Cementation: Stock Soars 20%!
Discover why ITD Cementation's shares hit a 20% upper circuit amid potential acquisition interest from Adani Group. Gain insights into the company's financials and stake details with Liquide.
ITD Cementation was in spotlight in Friday’s trading session, with its shares hitting a 20% upper circuit at Rs 565.85 on the National Stock Exchange (NSE). This spike in stock price comes amid news that the Adani Group is considering acquiring the promoter's stake in the company, according to a report from CNBC-TV18. However, the Adani Group has yet to officially comment on this speculation.
Potential Valuation of the Deal
The buzz around this potential acquisition stems from a July 2024 announcement by Italian-Thai Development Public Company Limited (ITD), the majority stakeholder, about exploring divestment opportunities. Although the process is still in the preliminary stages, the current market valuations hint that the deal, including a fully subscribed open offer, could be valued at a whopping Rs 5,888.57 crore.
Stake Details and Open Offer
As of the end of June 2024, Italian Thai Development Public Co. held a 46.64% stake in ITD Cementation. If the promoters decide to proceed with the stake sale, it would trigger an open offer for an additional 26% of the company’s shares, opening opportunities for other investors to get involved.
Business Insights and Financial Performance
ITD Cementation is renowned for its expertise in heavy civil, infrastructure, and EPC projects, including prestigious ones like the Delhi and Kolkata metro systems. The company boasts a robust order book of Rs 18,536 crore as of June 30, 2024, with new orders valued over Rs 1,053 crore secured in Q1FY25 alone.
Demonstrating solid financial health, ITD Cementation reported a substantial 108% YoY growth in net profit for the June quarter, reaching Rs 100 crore from Rs 48 crore in the year-ago quarter. Net sales also saw a significant increase, up 30% to Rs 2,397 crore from Rs 1,841 crore in the prior year.
Expert Stock Investment Advice with LiMo
Should you buy ITD Cementation now? Ask LiMo, the world's first AI copilot for stock investing, available exclusively through Liquide. LiMo provides detailed analyses, judgment, and actionable insights based on technical indicators to guide you on when to enter and exit trades.
Start your Investment Journey with Liquide
For an in-depth grasp of the financial markets and potential investment avenues, delve deeper with Liquide. Boasting advanced tools like LiMo and thorough market insights, Liquide equips you with the knowledge to make informed investment decisions. Download the App now from the Google Play Store or Apple Appstore and embark on a journey of informed and successful investing.