Highlights

• Ambuja Cements’ Board has approved schemes to amalgamate ACC Limited and Orient Cement Limited into the company.
• The merger includes defined share exchange ratios for shareholders of ACC and Orient Cement, subject to approvals.
• The transaction is expected to be completed within the next one year, pending regulatory and statutory clearances.

Ambuja Cements Limited (NSE:AMBUJACEM) shares are on investor’s radar as the company announced that its Board of Directors has approved separate schemes of amalgamation for the merger of ACC Limited and Orient Cement Limited with Ambuja Cements. The decision marks a key step toward consolidating the group’s cement operations under a single corporate structure, subject to the receipt of requisite regulatory and shareholder approvals.

Board Approval for Amalgamation

The approved schemes outline the merger of ACC Limited and Orient Cement Limited into Ambuja Cements, creating a unified cement platform operating on a pan-India basis. The amalgamation is intended to streamline the corporate structure by integrating manufacturing, logistics, branding, and sales operations across the combined entity.

Upon completion, Ambuja Cements will become the holding entity for the merged operations, while the existing product brands of Ambuja and ACC are expected to continue operating in their respective markets.

Share Exchange Ratios Detailed

As part of the approved schemes, Ambuja Cements has defined share exchange ratios for eligible shareholders of ACC and Orient Cement. For every 100 equity shares of ACC with a face value of ₹10 each, Ambuja Cements will issue 328 equity shares with a face value of ₹2 each. Similarly, for every 100 equity shares of Orient Cement with a face value of ₹1 each, Ambuja Cements will issue 33 equity shares with a face value of ₹2 each.

The allotment of shares will be subject to the terms of the schemes and completion of all statutory and regulatory processes.

Transaction Timeline and Approvals

The amalgamation is subject to approvals from shareholders, regulatory authorities, stock exchanges, and judicial bodies, as applicable. Ambuja Cements has indicated that, following receipt of these approvals, the transaction is expected to be completed over the next one year.

Upon completion, the subsidiaries involved in the transaction are expected to become integral parts of Ambuja Cements, eliminating the need for separate management service agreements.

Consolidation of Operations and Assets

The amalgamation is designed to bring together manufacturing and logistics networks under a single structure. The combined entity is expected to benefit from coordinated planning across plants, grinding units, and distribution channels. The merger also aligns with Ambuja Cements’ stated plans to expand cement production capacity from 107 million tonnes per annum to 155 million tonnes per annum by FY28.

In addition, ongoing amalgamation processes involving Sanghi Industries and Penna Cement are at various stages of approval. Following completion, stakeholders are expected to engage with a unified corporate entity.

ESG and Sustainability Integration

Post-merger, the combined entity will operate under a consolidated environmental, social, and governance framework. This includes renewable energy adoption, low-carbon cement initiatives, and sustainability practices aligned with existing group-level targets and commitments.

Market Snapshot

Ambuja Cements shares were quoted at ₹551.15, up ₹11.20 or 2.07 per cent at the time of writing on 23 December 2025.

Disclaimer:

The information available on this article is provided for education and informational purposes only. It does not constitute or provide financial, investment or trading advice and should not be construed as an endorsement of any specific stock or financial strategy in any form or manner. We do not make any representations or warranties regarding the quality, reliability, or accuracy of the information provided. This website may contain links to third-party content. We are not responsible for the content or accuracy of these external sources and do not endorse or verify the information provided by third parties. We are not liable for any decisions made or actions taken based on the information provided on this website.

Copyright 2025 Krish Capital Pty. Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.