DECEMBER 20249SANGHI INDUSTRIES & PENNA CEMENT TO MERGE WITH AMBUJA CEMENTSGOVERNMENT LOOKING AT ADDITIONAL FINANCING OPTIONS FOR RENEWABLES PROJECTSRenewable energy minister Pralhad Joshi said he will hold a meeting with banks and the industry leaders in January to discuss increasing financing for renewable energy projects."In coming days, I think somewhere in the month of January, I would meet the chairmen and MDs of all banks, Adani Cement stated on Tuesday its plan to merge Sanghi Industries and Penna Cement Industries with its main entity, Ambuja Cements, consolidating its cement operations under one umbrella. In the merger, for every one hundred shares that were held in Sanghi Industries, shareholders will receive twelve shares of in Mumbai," Joshi said while addressing the International Energy Conference organized by the Confederation of Indian Industries (CII).Last week, renewable energy secretary Prashant Kumar Singh had said there was a need to have a green energy financing obligation on banks as they are currently funding only a small portion of renewable energy projects while non-banking financial companies sanctioned the major portion of their requirement.Minister Joshi, while speaking to reporters on the sidelines of the event today, added: "We will talk on providing more financing for renewable energy sector."The meeting is on the lines of achieving India's goal of 500 GW non-fossil fuel based energy capacity by 2030. Around 30 lakh crore of investment is needed in the renewable energy sector in the next few years.Based on India's ambition, it will become one of the top global markets for renewable energy investments, the minister said adding that the country's green capacity addition has been rising.Between April and November, India added almost 15 GW of renewable energy capacity, nearly double the 7.54 GW added during the same period last year.He added that in the last three financial year, India has attracted $6.1 billion in FDI into the renewable energy sector. Ambuja Cements while Penna Cement's shareholders will receive 321.50 per share as the company is unlisted. The accomplishment of the process is anticipated to take 9-12 months.Ambuja Cements, boasting a marketplace 1.41 lakh crore, experienced a 1 percent decline in its shares, closing at 570.95 on Tuesday, whereas Sanghi Industries, with an evaluation of 1,986 crore, ended 0.38 percent down at 76.92 per share. Post-merger, some shares held by the promoter group will shift to public shareholders, leading to a minor decline in the promoter's stake in Ambuja Cements from 67.57 percent to 67.18 percent.Penna Cement, purchased by Ambuja in June for 10,422 crore, has an operational capacity of 10 million tonnes, with two extra units under development that will contribute an additional 4 million tonnes. The firm paid 5,185 crore for Sanghi Industries, where India's largest cement and clinker plant is located in a single site.Adani Cement, the second biggest cement manufacturing company in India, has an annual production facility of 89 MT. The company has aimed at a total production with the recent acquisition and the existing projects that is 104 MTPA by March 2025 and has a target of 140 MTPA by March 2028.
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