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- Adani Ambuja Cements Subsidiary Merger Update | Sanghi Industries Penna Cement
Mumbai4 hours ago
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Adani Group’s Ambuja Cements has today (December 17) announced the merger of its subsidiary companies Sanghi Industries and Penna Cement Industries with itself. Under the scheme of arrangement, shareholders of Sanghi Industries will get 12 shares of Ambuja Cements for every 100 shares held.
Last year, the company had acquired Sanghi Industries for about Rs 5,185 crore. In fact, Ambuja Cements wants to increase its total cement production capacity to more than 100 MTPA by the end of this financial year. Recently Ambuja Cements has announced to acquire 46.8% stake of Orient Cement Limited.
The purpose of merger is to make the company more competitive and efficient.
Adani Group’s Cement Business CEO Ajay Kapoor said- The objective of this merger is to make the company more competitive and efficient, which will increase the value of our shareholders. Better working capital management and internal funds will support our business operations.
Penna has 4 integrated plants in Andhra Pradesh and Telangana
Penna has 4 integrated plants in Andhra Pradesh, Telangana and one grinding unit in Maharashtra. Its operational capacity is 10 MTPA. Along with this, 2 plants with 2 MTPA capacity are under construction in Krishnapatnam and Jodhpur, which are expected to be completed in the next 8-12 months. Apart from this, there are also five bulk cement terminals at Kolkata, Gopalpur, Karaikal, Kochi and Colombo (Sri Lanka).
Meanwhile, Sanghi Industries’ Sanghipuram plant is India’s largest single-location cement and clinker unit in terms of capacity, with a captive jetty and a captive power plant. Sanghi Industries has a clinker capacity of 6.6 MTPA, cement production capacity of 6.1 MTPA and limestone reserves of one billion tonnes.
Ambuja Cements shares fell by 0.94%
Ambuja Cements shares saw a decline of 0.94% today. The company’s shares have seen a decline of 1.51% in the last 5 days and a rise of 3.81% in 1 month. Whereas, Ambuja Cements gave a return of 8.72% in the last 1 year.
Sanghi Industries shares fell by 0.19%
A decline of 0.19% was seen in the shares of Sanghi Industries today. The company’s shares have seen a decline of 5.95% in the last 5 days and 5.02% in 1 month. Whereas, in the last 1 year, Sanghi Industries gave a negative return of 42.24%.
Ambuja wants to have 140 million ton annual production capacity
Ambuja Cements, the country’s second largest cement producing company, has an annual production capacity of 89 million tonnes, which it plans to increase to 140 million tonnes by 2027-28.