Based on people familiar with the matter, Adani group-owned Ambuja-ACC and JK Lakshmi Cement are ahead in the race to acquire Ahmedabad-based Sanghi Cement, which is being sold for an estimated enterprise value of Rs 6,000 crore.
The two frontrunners expect to begin due diligence on the company soon and, if satisfactory, to make formal offers within the next two months.
According to the sources, Shree Cement, Nirma Group, and Dalmia Bharat had also submitted proposals to acquire a controlling stake in Sanghi Cement, but are no longer in the running.
Sanghi Cement is owned by the Sanghi family, who also own Sanghi Industries.
On the BSE on Monday, Sanghi Industries' shares reached a 52-week high of Rs 93.35, giving the company a market capitalisation of around Rs 2,400 crore. In the last month, the company's stock has increased by 26%.
"No comments on market speculation," an Adani group spokesperson told ET.
Sanghi Cement and JK Lakshmi Cement both declined to comment. Dalmia and the Nirma group declined to comment as well. Shree Cement has confirmed that it has withdrawn from the bidding for Sanghi Cement.
The top three cement players in Gujarat are Ambuja-ACC, JK Lakshmi Cement, and UltraTech, from which Sanghi Cement derives the majority of its revenues.