Ambuja Cements Merger: How many shares will investors receive?

Synopsis: The shares of the company rose around 4.3 percent after the announcement of the merger of ACC, Orient and others into Ambuja Cement Ltd. This is a move by the Adani group to establish a ‘One Cement Platform’, creating a PAN-India Cement Powerhouse. 

The share of the company is among the leading cement companies in India. It is a member of the Adani Group. Currently, it has a combined cement capacity of 107 million tonnes with 24 integrated cement manufacturing plants and 22  grinding units across the country are in focus after the announcement of a huge merger.

With the market capitalization of Rs. 1,36,222.19 crore, Ambuja Cements Ltd’s shares on Tuesday made a day high of Rs. 563.25 per share, up by  4.30 percent from its previous day’s close price of Rs. 540 per share. The shares have given a return of 123.29 percent over the last five years.

Details of the Amalgamation:

Share Exchange Ratio: For every 100 equity shares of ACC with a face value of Rs. 10 each, Ambuja Cements will issue 328 equity shares with a face value of Rs.2 each, to eligible shareholders of ACC. The appointed date for the same is January 1, 2026.

For every 100 equity shares of Orient Cement with a face value of Rs. 1 each, Ambuja Cements will issue 33 equity shares with a face value of Rs. 2 each, to eligible shareholders of Orient Cement. The appointed date for the same is May 1, 2025.

For this, both company’s amalgamation into Ambuja, approval of Competition Commission is not required as this transaction falls under intra-group merger, whereas it still is Subject to requisite approvals from its Shareholders, Creditors, SEBI, NCLT etc, transaction is expected to be completed over a period of 12 months.

As per interest pooling method all the assets and liabilities, including reserves of ACC/Orient Cements, as appeared in Ambuja Consolidated Financial Statement,s will be transferred to Ambuja Standalone Financial Statements. Post these mergers, the Adani Ambuja Cements and Adani ACC brands will continue to operate as usual, depending on the leading product brands in their respective segments

Strategic Implications:

Merger Synergies: The merger is expected to make operations smoother by improving manufacturing efficiency and streamlining logistics. Better use of capital should help lift profitability, fund capacity expansion, and create stronger long-term value for shareholders.

Effects on Balance sheet and corporate structure: This move supports Ambuja Cements’ long-term strategy to scale up cement capacity from 107 MTPA to 155 MTPA by FY28. A clean and strong balance sheet gives the company the flexibility to deploy capital efficiently and respond faster to changing market needs.

This amalgamation goes beyond a routine merger. For shareholders, it means a direct stake in a larger, financially stronger, and more agile cement player—one that is better positioned to grow and compete in the years ahead.

Value creation for shareholders: The proposed amalgamation of Sanghi Industries and Penna Cement with Ambuja is currently progressing through various approval stages. Once completed, the structure will be simplified, allowing customers, investors, suppliers, and partners to interact with one consolidated entity, improving clarity and efficiency. 

Scale impact and ESG vision: The merger brings together two of India’s most trusted cement names Ambuja and ACC under one integrated corporate platform. While the businesses will be unified at the group level, the Adani Ambuja Cements and Adani ACC brands will continue operating independently, retaining their strong product identities across regional markets.

With operations coming together, the merged company will follow a single ESG roadmap. This will help speed up the shift toward renewable energy, expand low-carbon cement offerings, and strengthen sustainability practices across the group.

Other Merger with several stage approvals

Sanghi Industries and Penna Cement merger schemes with Ambuja Cements were approved by respective boards on December 17, 2024, and remain pending statutory and regulatory approvals, including from the National Company Law Tribunal (NCLT).

Sanghi Merger status, proposed to be merged into Ambuja Cements through a share-swap arrangement, under which shareholders of Sanghi will receive 12 Ambuja shares (Rs.2 face value) for every 100 Sanghi shares (Rs.10 face value). Ambuja already owns a 58.08% stake in Sanghi. However, the merger is yet to take effect, which is why recent shareholding disclosures do not reflect any post-merger changes.

Penna Merger Status, The merger structure is different for Penna. Minority shareholders will receive a cash payout of Rs.321.50 per Rs.10 share, as Ambuja already holds a 99.94% stake in the company. No new Ambuja shares will be issued as part of this process. Similar to the Sanghi merger, the scheme is still awaiting approvals from the NCLT and other authorities. Once completed, existing MSAs will be dissolved as Penna is fully absorbed into Ambuja’s operations.

About the Company

Ambuja Cements Limited is the 9th largest building materials solutions company globally, a key part of the diversified Adani Portfolio, the country’s fastest-growing portfolio of sustainable businesses. With a cement capacity of ~107 MTPA across 24 integrated manufacturing plants and 22 grinding units.

The Merged company will have a total capacity of 107 MTPA,  which includes Ambuja’s total capacity of 57.6 MTPA, 40.4 MTPA  from ACC and 8.5 MTPA  from Orient. With strong consolidated financials as of Q2, Ambuja Cement’s revenue grew 21 percent YoY to Rs. 9,174 crore from Rs. 7,552 crore in Q2 FY25 and a net profit growth of 234 percent to Rs. 2,302 crore in Q2 FY26.

Written by Gourav Pratap Singh  

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