Adani Stocks: Adani Group company Ambuja Cements has achieved a major corporate success. The Ahmedabad bench of the National Company Law Tribunal (NCLT) has approved the proposed merger between Ambuja Cements and its subsidiary Sanghi Industries. The company informed about this decision in the information sent to the stock markets on February 9.
Ambuja Cements said that in the order given on Monday, NCLT approved the amalgamation plan. The tribunal said that after a detailed study of the scheme, it prima facie appears to be beneficial to the companies and will cause no harm to the interests of neither shareholders nor creditors.
NCLT’s comment
The process was going on from December 2023
It is noteworthy that Ambuja Cements had completed the acquisition of Sanghi Industries in December 2023 at an enterprise value of Rs 5,185 crore. After this, in December 2024, the company’s board approved the merger of Sanghi Industries and Penna Cement Industries into Ambuja Cements.
At that time the company had said that since all these companies are associated with the same business sector i.e. Cement Industries, this amalgamation will help in completely absorbing the business of Sanghi Industries into Ambuja. This will make operations more effective and profitable and business management more efficient and economical.
According to the company, this merger will enable better utilization of resources, reduction in overhead costs, cost savings, benefit of economies of scale, elimination of duplication of efforts and simplification of compliance processes.
merger ratio
Ambuja Cements had also clarified in December 2024 that after the merger it would issue shares to the shareholders of Sanghi Industries. As per the decided ratio, for every 100 equity shares of Sanghi Industries (face value Rs 10 per share), 12 equity shares of Ambuja Cements (face value Rs 2 per share) will be issued. After this, the eligible shareholders of Sanghi Industries will become shareholders of Ambuja Cements.
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