Ambuja Cement's Strategic Merger with Sanghi and Penna Cement

Ambuja Cement announced a significant merger involving Sanghi Industries Limited and Penna Cement Industries, marking a strategic move towards industry leadership and market consolidation. The merger aims to create a unified governance structure, enhance competitive strength, and streamline compliance processes. For Sanghi Industries shareholders, the deal transforms their investment into Ambuja Cement shares, a large-cap company. The transaction will result in Ambuja issuing 13 million new shares, leading to a minor dilution of the promoter stake by 0.35%. Moreover, Ambuja cement has acquired Penna Cement for an enterprise value of Rs 104.2 billion, boosting its coastal market presence. Furthermore, the restructuring includes the consolidation of Adani Cementation, involving the issuance of 8.7 million shares, causing additional promoter stake dilution by 0.24%. These initiatives aim to streamline operations and achieve cost efficiencies. The merger awaits regulatory approvals and is expected to complete in 9-12 months, with an overall equity dilution of 0.88% for Ambuja shareholders, unlocking significant value.