Adani group-owned Ambuja Cements Limited (BSE:500425)-ACC Limited (NSEI:ACC) and JK Lakshmi Cement Limited (BSE:500380) are ahead in the race to acquire Ahmedabad-based Sanghi Cements, Ltd. which is being sold for an estimated enterprise value of INR 60,000 million, people familiar with the matter said. The two frontrunners are expected to start due diligence on the company soon and, if it is satisfactory, place formal offers over the next two months, they said. Shree Cement Limited (NSEI:SHREECEM), Nirma Limited and Dalmia Bharat Limited (NSEI:DALBHARAT) had also submitted proposals to acquire a controlling stake in Sanghi Cement company, but are no longer in the running, the people said.

Sanghi Cement is controlled by the family of Ravi Sanghi, promoters of Sanghi Industries. Sanghi Industries' shares hit a 52-week high of INR 93.35 on the BSE on July 24, 2023, giving the company a market capitalisation of around INR 24,000 million "No comments on market speculation," an Adani group spokesperson said in response to ET's queries. JK Lakshmi Cement and Sanghi Cement declined to comment.

Dalmia and Nirma group also declined to comment. Shree Cement confirmed it has dropped out of the race to acquire Sanghi Cement. Ambuja-ACC, JK Lakshmi Cement and UltraTech are the top three cement players in Gujarat from where Sanghi Cement derives the bulk of its revenues.

"It's a very strong strategic fit for Ambuja-ACC," a person briefed about discussions on the transaction remarked.