Ambuja Cements and Adani Cementation Merger Receives Green Light from Stock Exchanges
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Mumbai, Jan 2 (NationPress) Ambuja Cements Ltd has successfully received an observation letter indicating no objection from the National Stock Exchange (NSE) along with no adverse observations from the Bombay Stock Exchange (BSE) regarding its merger with Adani Cementation Ltd.
The board approved the merger proposal between Adani Cementation and Ambuja Cements in June 2024.
According to the stock exchange circular dated January 1, "The Scheme is still subject to various statutory and regulatory approvals as well as the consent of the respective shareholders and creditors (where applicable) of the companies involved in this scheme."
"Based on the draft scheme and other documents submitted by the Company, including the undertaking given in accordance with Regulation 11 of SEBI Regulations, 2015, we hereby convey our No objection in line with Regulation 37 of SEBI Regulations, 2015, allowing the Company to submit the draft scheme to NCLT," the circular stated.
The Adani Group's cement division, Ambuja Cement, is on a path toward substantial growth, aiming to achieve a production capacity of 140 million tonnes per annum (MTPA) by 2028.
This strategic move by Ambuja Cements is expected to enhance efficiency, strengthen competitive positioning, and streamline compliance processes.
In pursuit of this goal, Ambuja Cement acquired Orient Cement Ltd (OCL) for an equity value of Rs 8,100 crore last October. The acquisition involved purchasing 46.8 percent of OCL shares from its existing promoters and selected public shareholders, fully funded through internal resources.
With its subsidiaries, including ACC Ltd, Penna Cement Industries Ltd, and Sanghi Industries Ltd, Ambuja has expanded the Adani Group's cement capacity to 88.9 MTPA, encompassing 20 integrated cement manufacturing plants, 20 grinding units, and 12 bulk terminals nationwide.
On Thursday, shares of Ambuja Cements were trading at Rs 545.60, marking an increase of 1.30 percent.
