Major Merger Boost: Ambuja Cements to Consolidate Giant Cement Empire

Ambuja Cements plans to merge its subsidiaries ACC Ltd and Orient Cement, among others, to establish a dominant pan-India cement platform. The merger aims to enhance operational efficiencies, optimize logistics, and increase shareholder returns, with a projected capacity of 107 million tonnes annually.

In a significant market move, Ambuja Cements Ltd has announced its strategic merger with subsidiaries ACC Ltd and Orient Cement, aiming to create a formidable 'one cement platform' across India. The merger includes a capacity augmentation to 107 million tonnes per annum.

Following the merger announcement, Orient Cement's shares surged nearly 10% to Rs 180 on the BSE, while Ambuja Cements saw a 4.30% rise, reaching Rs 563.25. ACC Ltd stock also noted an increase of 1.47%, trading at Rs 1,802.

The proposed amalgamation, approved by the Ambuja Cements board, promises greater operational efficacy, optimized logistics, and better capital deployment, leading to enhanced profitability and shareholder returns. Stock exchanges will witness share exchange adjustments to cater to this new business structure.

(With inputs from agencies.)