New Delhi:
Adani Cements (Ambuja Cements Ltd.) received ‘no adverse comment’ from BSE and ‘no objection’ from National Stock Exchange (NSE) regarding the merger plan with Adani Cementation Ltd. An observation letter has been received. This merger proposal between Adani Cementation and Ambuja Cements was approved in June 2024 itself.

What is the merger scheme?

A circular issued on January 1 said the plan is subject to several statutory and regulatory approvals, as well as the consent of the respective shareholders and creditors of the companies involved in the plan.

Adani Cementation is a 100% subsidiary of Adani Enterprises. Under this scheme of merger, Adani Enterprises will get 174 shares of Ambuja Cements for every 1 share of Adani Cementation. In this way, 87 lakh shares of Ambuja Cements will be issued to the company in exchange of 50,000 shares of Adani Cementation.

Ambuja Cements will not have to spend cash for merger

The good thing is that Ambuja Cements will not have to spend any cash for this merger. For this merger, approval from all regulatory bodies including CCI, NCLT, SEBI will be required.

Ambuja Cements acquires Penna Cement for Rs 10,422 crore

Earlier this month, on June 13, Ambuja Cements had announced the acquisition of Penna Cement at an enterprise value of Rs 10,422 crore.

Adani Group’s cement arm is best positioned to benefit from cement themes such as consolidation, sustainability and ESG. This step of Ambuja Cements is to increase efficiency, enhance competitive strength and simplify compliance processes. Shareholders are set to benefit from the company’s focus on consolidation, streamlined operations and large-scale production capabilities.

(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)