Ambuja Cements (NS:ABUJ) Ltd receives 'no objection' observation letter from National Stock Exchange and 'no adverse observations' from Bombay Stock Exchange about merger with Adani Cementation Ltd.
This proposal for merging Adani Cementation with Ambuja Cements had received its board approval back in June 2024.
As cited in the circular of the stock exchange on January 1, "The Scheme remains subject to various statutory and regulatory approvals and of the respective shareholders and creditors (where applicable) of the companies involved in the scheme."
"Based on the draft scheme and other documents submitted by the Company, including undertaking given in terms of Regulation 11 of SEBI Regulations, 2015, we hereby convey our "No objection" in terms of Regulation 37 of SEBI Regulations, 2015, to enable the Company to file the draft scheme with NCLT," the circular said.
Ambuja Cement, the cement arm of Adani Group, is likely to grow robustly. The company has ambitious plans to reach 140 million tonnes per annum (MTPA) by 2028.
Ambuja Cements is likely to increase efficiency, strengthen competitiveness, and simplify compliance processes through this move.
For this purpose, Ambuja Cement has acquired Orient Cement Ltd (OCL) at an equity value of Rs 8,100 crore in October last year. The company has announced the acquisition of 46.8 per cent shares of OCL from its current promoters and certain public shareholders and that the acquisition will be fully funded through internal accruals.
Ambuja's subsidiaries include ACC Ltd (NS:ACC), Penna Cement Industries Ltd and Sanghi Industries Ltd. With this acquisition, Adani Group's cement capacity has reached 88.9 MTPA.
It operates 20 integrated cement manufacturing plants, 20 cement grinding units, and 12 bulk terminals across the country.
Ambuja Cements shares were trading at Rs 545.60, up 1.30 per cent, on Thursday.
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