Economies of Scale
Ahmedabad NCLT bench approves merger of Sanghi Ind with Ambuja Cements
This story was originally published at 17:58 IST on 9 February 2026
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--NCLT Ahmedabad approves Sanghi Industries' merger with Ambuja Cements
NEW DELHI – The Ahmedabad bench of the National Company Law Tribunal Monday approved the merger of Sanghi Industries Ltd. with Adani Group-owned Ambuja Cements Ltd. In 2024, the board of Ambuja Cements had approved a share-swap ratio of 12 Ambuja Cements shares of INR 2 face value for every 100 Sanghi Industries shares of INR 10 face value, the tribunal noted.
The appointed date for the merger scheme shall be Apr. 1, 2024 and its effective date shall be the date on which the certified copy of this order is filed with the Registrar of Companies, or such other date as specified in the merger scheme, said the tribunal. Sanghi Industries shall be dissolved without winding up, said the tribunal.
The merger scheme seems to be prima facie beneficial to the companies and will not be in any way detrimental to the interest of its shareholders and creditors, said the tribunal. The merger scheme is in the public interest, as it enhances operational efficiency, consolidates resources, and does not prejudice the rights of shareholders, creditors, or statutory authorities, it said.
As of October, the authorised share capital of Sanghi Industries was INR 25.50 billion and the issued, subscribed and paid up share capital was INR 24.58 billion. The company's Sanghipuram plant in Kutch, Gujarat, has annual cement production capacity of 6.1 million tonnes and clinker capacity of 6.6 million tonnes per annum. The facility also has a captive jetty and limestone reserves. The authorised share capital of Ambuja Cements was INR 81.53 billion as of October, the issued share capital was INR 4.94 billion and subscribed and paid-up share capital was INR 4.94 billion.
Ambuja Cements holds 58.08% of the paid-up equity share capital of Sanghi Industries and 100% of the 8% non-convertible cumulative redeemable preference shares of the company.
The merger scheme would enable Ambuja Cements to integrate Sanghi Industries' operations, leading to more efficient and economical business management, the petitioners said. This would lead to better resource utilisation, reduced overheads, cost savings, economies of scale, elimination of duplicated efforts, and streamlined compliance requirements through amalgamation, they said. The amalgamation will enhance business potential of Sanghi Industries, add value to both the companies, and ultimately increase the shareholders' value, they added.
On Monday, shares of Ambuja Cements ended 2.5% higher at INR 542.45 on the National Stock Exchange and those of Sanghi Industries ended 3.0% higher at INR 64.32. End
Reported by Surya Tripathi
Edited by Ashish Shirke
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