Ambuja Cements’ Share Price in Focus Amid Sanghi Merger Plan: 12:100 Share Swap Explained

Ambuja Cements (NSE: AMBUJACEM), part of the Adani Group, has received a ‘no objection’ letter from the National Stock Exchange (NSE) to proceed with the proposed merger of Sanghi Industries. The move follows Ambuja’s acquisition of a 54.51% stake in Sanghi last year and forms part of a broader strategy to scale up capacity and improve operational efficiency.

Sanghi Shareholders to Get 12:100 Share Swap Ratio

As part of the approved scheme of arrangement, Sanghi Industries (NSE: SHANGHIND) shareholders will receive 12 shares of Ambuja Cements for every 100 shares they hold in Sanghi. The share swap ratio was disclosed in the company’s regulatory filings, aimed at ensuring a fair and balanced exchange for minority investors.

Ambuja Cements disclosed that it had received the NSE’s no objection certificate (NOC) on July 17, which now clears the way for the merger to proceed, subject to other regulatory and shareholder approvals.

Background: December Acquisition and Strategic Goals

Ambuja Cements had announced the proposed merger in December 2023, soon after completing the acquisition of Sanghi Industries for ₹5,185 crore, funded entirely through internal accruals. This move was aligned with the company’s growth strategy under the Adani Group’s leadership to consolidate assets and improve supply-chain efficiencies.

Ambuja currently owns 54.51% of Sanghi, giving it effective control over operations.

Read More: Adani Group Recent Acquisitions Across Power, Ports, and Cement in H1 2025.

Sanghi's Capacity to Strengthen Ambuja’s Coastal Footprint

Sanghi Industries brings significant production assets to the table, including:

• 6.6 MTPA clinker capacity
• 6.1 MTPA cement manufacturing capacity
• 1 billion tonnes of limestone reserves

These resources are strategically located along India’s western coast, enabling low-cost clinker production and facilitating cost-effective distribution to high-demand regions like Gujarat, Maharashtra, Karnataka, and Kerala.

Ambuja plans to scale its capacity to 15 MTPA across the West Coast markets over the next 30 months, significantly strengthening its presence in the region.

Merger to Enhance Operational Synergy and Shareholder Value

The merger is designed to streamline operations, enhance cost efficiency, and deliver greater value to shareholders by integrating Sanghi’s resource base and production strength into Ambuja’s larger network. The consolidation is expected to improve scale, logistics, and market coverage, especially in western India.

Ambuja Cements and Sanghi Industries’ Share Price Performance

As of the morning session on July 18, 2025, both Ambuja Cements and Sanghi Industries are trading with modest gains following the news of the proposed merger. Ambuja Cements is quoting at ₹595.50, up 0.15% from the previous close of ₹594.60.

Meanwhile, Sanghi Industries is trading at ₹67.20, up 0.93% from its previous close of ₹66.58. It has witnessed a higher traded volume of 0.97 lakh shares, and the VWAP stands at ₹67.08.

Conclusion

With the NSE giving its nod, Ambuja Cements is one step closer to completing its merger with Sanghi Industries. The deal not only solidifies Ambuja’s coastal footprint but also supports its long-term vision of capacity expansion and operational efficiency. Investors and industry watchers will now look forward to the remaining regulatory approvals and the timeline for integration.

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