Ambuja Cements Receives Approval For Merger With Adani Cementation Ltd

Ambuja Cements Ltd has received a ‘no objection’ letter from the National Stock Exchange (NSE) and ‘no adverse observations’ from the Bombay Stock Exchange (BSE) regarding its proposed merger with Adani Cementation Ltd.

This is a positive step forward for the merger, which was initially approved by the board in June 2024.

As per the stock exchange circular issued on 1 January, “The Scheme remains subject to various statutory and regulatory approvals and of the respective shareholders and creditors (where applicable) of the companies involved in the scheme.”

“Based on the draft scheme and other documents submitted by the Company, including undertaking given in terms of Regulation 11 of SEBI Regulations, 2015, we hereby convey our ‘No objection’ in terms of Regulation 37 of SEBI Regulations, 2015, to enable the Company to file the draft scheme with NCLT,” the circular added.

Ambuja Cements, a key player in Adani Group’s cement arm, is aiming for significant growth, targeting a cement production capacity of 140 million tonnes per annum (MTPA) by 2028.

The merger will likely enhance the company’s competitive strength, improve operational efficiency, and streamline compliance processes.

In addition to the merger, Ambuja Cements expanded its portfolio in October 2024 by acquiring Orient Cement Ltd (OCL) for Rs 8,100 crore.

This acquisition included the purchase of 46.8 percent of OCL shares from its current promoters and certain public shareholders, funded entirely through internal accruals.

With subsidiaries like ACC Ltd, Penna Cement Industries Ltd, and Sanghi Industries Ltd, Ambuja has increased the Adani Group’s total cement capacity to 88.9 MTPA, with 20 cement manufacturing plants, 20 grinding units, and 12 bulk terminals across India.

Earlier on Thursday, Ambuja Cements’ shares traded at Rs 545.60, marking a 1.30 percent increase.

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