Shares of Star Cement have surged nearly 20% over the past six trading sessions, driven by speculation that Ambuja Cements, a part of the Adani Group, is in talks to acquire a stake in the company. On Wednesday, the stock jumped 6%, closing at ₹207.90 on the BSE, with its market capitalisation reaching ₹8,403 crore.
The rally follows media reports suggesting that Ambuja Cements is exploring an acquisition to strengthen its position in India’s cement industry. Despite the buzz, Star Cement has denied any discussions, terming the news “speculative” in its regulatory filing. The company reiterated its commitment to transparency and compliance with SEBI’s disclosure norms. Star Cement, a leader in the North-East market with an installed production capacity of 7.7 million tonnes per annum (MTPA), has been in the spotlight as Ambuja Cements ramps up its acquisition spree. In recent years, Ambuja has acquired several companies, including Penna Cement, Sanghi Industries, and Orient Cement, as part of its broader strategy to expand its cement capacity to 97.4 MTPA by March 2025.
The Adani Group, which owns Ambuja Cements, has been aggressively expanding its cement portfolio to become India’s largest cement manufacturer. Its latest deals include a 46.8% stake in Orient Cement and a 1.5 MTPA grinding unit in Tamil Nadu. Currently, Adani Cement, including subsidiaries ACC and Sanghi Industries, is India’s second-largest cement producer, with a total capacity of 78.9 MTPA. The group’s acquisition strategy also targets Gujarat’s Saurashtra Cement, Vadraj Cement, and Jaiprakash Associates’ cement assets. If the acquisition of Star Cement materialises, it would further strengthen Ambuja’s presence in the strategically critical Northeast region, where demand for cement continues to grow. Industry analysts believe this acquisition could consolidate Ambuja’s position in the market while supporting Adani Cement’s ambitious capacity expansion goals. For now, investors remain optimistic, even as clarity on the potential deal awaits.
