Sanghi Industries and Penna Cement to Merge with Ambuja Cements

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 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% decline in its shares, closing at ₹570.95 on Tuesday, whereas Sanghi Industries, with an evaluation of ₹1,986 crore, ended 0.38% 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% to 67.18%.

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.