ACC Ltd and Ambuja Cements have taken a major step towards consolidation after the board of ACC approved a Scheme of Amalgamation with its parent company, Ambuja Cements Limited. The move is aimed at creating a single, scaled cement platform under the Adani Group, simplifying ownership and operational structures across its cement business.
Under the proposed merger structure, Ambuja Cements will issue 328 equity shares for every 100 equity shares held by ACC shareholders. Following the amalgamation, ACC will be merged into Ambuja Cements, resulting in a streamlined corporate framework and consolidation of assets. The group stated that the transaction is expected to unlock operational and financial synergies across its cement portfolio.
The merger is subject to approvals from the National Company Law Tribunal (NCLT) and other statutory and regulatory authorities before it can be implemented.
Once completed, the combined cement business will command one of the largest manufacturing footprints in India. The amalgamation is also aligned with the Adani Group’s long-term ambition of reaching 140 million tonnes per annum (MTPA) of cement capacity by 2028.
In the equity markets, shares of ACC Ltd ended Thursday’s session at Rs 1,782.50 on the National Stock Exchange, gaining 1.77 percent. Ambuja Cements shares finished marginally higher at Rs 539.95.
On the financial front, ACC reported a sharp improvement in profitability for the September quarter. The company’s net profit jumped more than five-fold year-on-year to Rs 1,112 crore, compared with Rs 200 crore in the same quarter last year. Revenue for the quarter rose 26.4 percent to Rs 5,851.5 crore from Rs 4,629 crore, supported by higher volumes and improved realisations.
Ambuja Cements also delivered a strong performance, posting a consolidated net profit of Rs 1,766 crore for the September quarter, sharply higher than Rs 480 crore a year earlier. The profit growth was aided by a tax write-back of Rs 1,465 crore, compared with a tax expense of Rs 248 crore in the year-ago period. Revenue increased 22 percent to Rs 9,175 crore from Rs 7,552 crore, marking the company’s highest-ever second-quarter topline.
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