Ambuja Cements Unites Forces for a Stronger Future

Ambuja Cements Ltd announced a merger with subsidiaries ACC Ltd, Orient Cement, Penna Cement, and Sanghi Industries to form a 'one cement platform'. The consolidation aims to optimize operations, increase profitability, and expand capacity. Shareholder returns are expected to improve through enhanced efficiencies and capital deployment.

Shares of Orient Cement rose over 4% on Tuesday following the announcement of a merger with Ambuja Cements Ltd, ACC Ltd, Penna Cement, and Sanghi Industries. This strategic consolidation aims to establish a 'one cement platform' and strengthen the company's position as a pan-India cement powerhouse.

Orient Cement's stock soared 4.39% to Rs 171.05 at the BSE, reaching an intra-day high of Rs 180. Meanwhile, Ambuja Cements' shares increased by 1.25% to close at Rs 546.75, touching an intra-day peak of Rs 563.25. In contrast, ACC Ltd's stock eased by 1.21% to Rs 1,754.30 after a brief rise during the day.

The merger, approved by the Ambuja Cements board, aims to achieve operational efficiencies, enhance logistics, and optimize capital usage. For every 100 shares of ACC and Orient Cement, Ambuja will issue 328 and 33 shares, respectively. The inclusion of Sanghi and Penna Cement awaits statutory approvals.

(With inputs from agencies.)