Ambuja Cements announces merger with 2 subsidiaries

18 Dec 2024 , 09:23 AM

On Tuesday (December 17), Adani Group firm Ambuja Cements Ltd announced the merger of its subsidiaries, Sanghi Industries Ltd (SIL) and Penna Cement Industries Ltd (PCIL), with the parent company.

The announcement comes after the introduction of separate plans of arrangement for both companies, opening the stage for their integration into Ambuja Cements.

Sanghi Industries has a clinker capacity of 6.6 MTPA, a cement capacity of 6.1 MTPA, and limestone deposits totaling one Billion tonnes. As per reports, Sanghi Industries runs India’s largest single-location cement and clinker facility by capacity, in Sanghipuram, complete with a captive jetty and power plant.

Penna operates four integrated facilities in Andhra Pradesh and Telangana, as well as a grinding mill in Maharashtra, with an operational capacity of 10 MTPA. Furthermore, two facilities with a capacity of 2 MTPA each are under construction in Krishnapatnam and Jodhpur, and are expected to be finished within the next 8 to 12 months. It also operates five bulk cement terminals at Gopalpur, Kolkata, Kochi, Karaikal, and Colombo (Sri Lanka).

Ambuja Cements will issue 12 equity shares with a face value of ₹2 for every 100 equity shares of SIL with a face value of ₹10, as suggested by valuers and approved by the board. As a result, the eligible shareholders of SIL will become shareholders of Ambuja Cements.

These transactions will be carried out with the necessary clearances from relevant stakeholders and authorities, and are expected to be completed within 9-12 months.

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