Ambuja Cements Merger Update: Adani Group Company Announces Amalgamation Of This Subsidiary - Detail

Ambuja Cements, owned by the Adani Group is going to merge Sanghi Industries and Penna Cement Industries with itself. The second-largest cement maker of the country announced separate schemes of arrangements for its subsidiaries - Sanghi Industries Ltd (SIL) and Penna Cement Ltd (PCIL) through a share swap ratio.

Ambuja Cement in a regulatory filing said that the consolidation will help streamline organisational structure and simplify compliance requirements for effective governance.

The company's board in a meeting on Tuesday approved the scheme of arrangement with SIL and PCIL.

The Merger Story

“This merger aims to make our company more competitive and efficient, ultimately enhancing shareholder value. Enhanced working capital management and internal funds will support the growth of our business operations. 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,” said Ajay Kapur, CEO of the Cement Business at the Adani Group.

Ambuja Cements said that it will  issue 12 equity shares of the face value of Rs. 2/- each for every 100 equity shares of SIL of face value Rs. 10/- each as recommended by the valuers and accepted by the Board and thereby, the eligible shareholders of SIL will become the shareholders of Ambuja Cements.