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Informist, Tuesday, Dec. 17, 2024

--Ambuja Cements board OKs scheme of arrangement between Penna Cement, co 
--Ambuja Cements board approves scheme of arrangement between Sanghi Ind, co 

MUMBAI – The board of Adani group-owned Ambuja Cements Ltd. on Tuesday approved the company's merger with Sanghi Industries Ltd. and, separately, with Penna Cement Industries Ltd. Ambuja Cements will issue 12 equity shares with a face value of INR 2 apiece for every 100 shares of Sanghi Industries with a face value of INR 10 each. Sanghi Industries has a clinker capacity of 6.6 million tonnes per annum, a cement capacity of 6.1 MTPA, and limestone reserves of around 1 billion tonnes, Ambuja Cements said in an exchange filing.

The mergers, which are expected to be completed within 9 to 12 months, are still subject to approval from the National Company Law Tribunal, the company said. Both the transactions fall under the purview of related party transactions as defined under the Securities and Exchange Board of India's listing norms.

Penna Cement Industries currently has four integrated plants in Andhra Pradesh and Telangana, and a grinding unit in Maharashtra. The company has an operational capacity of 10 MTPA. Post merger, Ambuja Cements will pay the shareholders of Penna Cement Industries INR 321.50 for every fully paid up share with a face value of INR 10.

"Enhanced working capital management and internal funds will support the growth of our business operations. This advancement through a larger entity will increase market competitiveness and deliver greater value to our shareholders," said Ajay Kapur, chief executive officer of Cement Business, Adani Group in a press release.

Ambuja Cements had reported a net profit of INR 5.01 billion for the September quarter on revenues of INR 42.13 billion. On Tuesday, shares of Ambuja Cements closed a percent lower on the National Stock Exchange at INR 571.10, while Sanghi Industries closed at INR 76.90, down 0.3%.  End

Reported by Anand JC

Edited by Deepshikha Bhardwaj

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