Ambuja Cements Ltd.'s board on Tuesday approved the merger of its recently acquired entities—Sanghi Industries Ltd. and Penna Cement Industries Ltd.—with itself through separate schemes of arrangement.
The Adani Group cement-maker will issue 12 equity shares of face value of Rs 2 each for every 100 equity shares of Sanghi Industries of face value Rs 10. The eligible shareholders of Sanghi Industries will become the shareholders of Ambuja Cements, according to an exchange filing.
-
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
India Could Gain If AI Trade Unwinds, US Midterms May Hurt Markets: Ramesh Damani -
'Switch Off The Noise, Focus On Earnings': Raamdeo Agrawal's Advice To Investors -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI -
'One Can Never Get Good News And Bad Share Price': S Naren, ICICI Pru Life AMC On NDTV Profit Ignite
Subject to requisite approvals, the transaction is expected to be completed within 9-12 months, it added.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
Notably, Ambuja Cements holds 58.08% in Sanghi Industries and fully owns Penna Cement.
Sanghi Industries, acquired by Ambuja in 2023 at an enterprise value of Rs 5,000 crore, has a clinker capacity of 6.6 million tonnes per annum, cement capacity of 6.1 MTPA, and limestone reserves of one billion tonnes.
SIL's Sanghipuram plant is India's largest single-location cement and clinker unit by capacity, with a captive jetty and captive power plant.
Ambuja Cements acquired Hyderabad-based Penna Cement at an enterprise value of Rs 10,422 crore in August. The company has four integrated plants in Andhra Pradesh and Telangana, along with a grinding unit in Maharashtra. It has an operational capacity of 10 MTPA.
Ajay Kapur, CEO of cement business of the Adani Group, said the merger aims to make Ambuja Cements more competitive and efficient, with enhanced working capital management and internal funds to support business growth.
"Unified cash flow management will pool resources for faster expansion and cost savings in administration and governance, thereby simplifying compliance requirements. This advancement through a larger entity will increase market competitiveness and deliver greater value to our shareholders," he said in a statement.
Disclaimer: NDTV is a subsidiary of AMG Media Networks Ltd., an Adani Group Company.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
