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Ambuja Cements Shares in Focus; Announcement of Merger With Sanghi Industries, Penna Cement

Updated on: Dec 18, 2024, 3:31 PM IST
Ambuja Cements announces the merger of its subsidiaries, Sanghi Industries and Penna Cement, aiming to streamline operations and boost shareholder value.
Ambuja Cements Shares in Focus; Announcement of Merger With Sanghi Industries, Penna Cement
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On December 18, 2024, Ambuja Cements’ share price (NSE: AMBUJACEM) traded 0.19% lower, at ₹570 as of 10:40 AM on the NSE. The stock opened at ₹577, higher than the previous close of ₹571.10. Meanwhile, Sanghi Industries’ share price dropped 11% to ₹68.31 on the NSE in opening trade.

Ambuja Cements has revealed plans to merge its subsidiaries, Sanghi Industries and Penna Cement, into the parent company. The move is aimed at improving efficiency, competitiveness, and shareholder value.

Details of the Merger

This move is intended to enhance shareholder value, streamline the organisational structure, and simplify compliance processes for improved governance.

As per the proposed Schemes of Arrangement, Ambuja Cements will issue 12 equity shares of ₹2 each for every 100 equity shares of SIL, which have a face value of ₹10 each. The eligible shareholders of SIL will then become shareholders of Ambuja Cements.

The merger is subject to requisite approvals and is expected to be completed within 9-12 months.

Ajay Kapur, CEO of Adani Group’s Cement Business, stated that the consolidation would improve working capital management, support business growth, and boost market competitiveness.

SIL, with a clinker capacity of 6.6 MTPA and cement capacity of 6.1 MTPA, is known for its large-scale Sanghipuram plant. Penna Cement, with a capacity of 10 MTPA and ongoing expansion plans, also contributes significantly to the merger.

About Ambuja Cements

Ambuja Cements is one of India’s leading cement companies and a member of the diversified Adani Group. Ambuja Cements, with its subsidiaries, has taken the Adani Group’s cement capacity to 89 MTPA with 22 integrated cement manufacturing plants and 21 cement grinding units across the country.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

Published on: Dec 18, 2024, 9:51 AM IST

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