Ambuja Cements Ltd. has received a ‘no adverse observation’ letter from BSE and a ‘no objection’ letter from NSE for the proposed amalgamation with Adani Cementation Ltd, subject to final regulatory approvals, the company said in a press release on the stock exchanges.
In June 2024, Ambuja Cements, owned by the Adani group, announced that its board has sanctioned the merger with Adani Cementation, which is currently a subsidiary of Adani Enterprises.
Following regulatory and shareholder approvals, the merger will result in Adani Cementation becoming a wholly-owned subsidiary of Ambuja Cements. The transaction will be conducted through a share swap, with Adani Enterprises receiving 8.7 million shares of Ambuja Cements.
The merger aims to consolidate cement capacities within the Adani Group, improving operational efficiency and expanding Ambuja Cements’ presence along the coast. The scheme includes a swap ratio of 174 shares of Ambuja Cements for every 1 share of Adani Cementation.
In the second quarter of FY25, Ambuja Cements reported a net profit of ₹500 crore, marking a 22% decline from ₹633 crore in the same period the previous year.
The company’s revenue increased by 6%, reaching ₹4,213 crore, compared to ₹3,969 crore in Q2 FY24.
The EBITDA stood at ₹680 crore, dropping from ₹773 crore in Q2 FY24. The company also saw a decline in its margin, dropping by 340 basis points to 16.1%, from 19.5% in the previous year.
On January 02, 2025, Ambuja Cements’ share price traded at 1.14% higher at ₹544.75 at 12:30 PM on the NSE. The stock opened at ₹544 higher than ₹538.60 at its previous close. The stock gained 0.5% yesterday.
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