Shares of Orient Cement surged sharply on Tuesday, December 23, emerging as one of the top gainers on the National Stock Exchange after the board of Ambuja Cements approved a comprehensive amalgamation plan involving ACC Ltd and Orient Cement Ltd. The move is aimed at creating a single, scaled cement company under the Adani Group, intensifying competition with market leader UltraTech Cement.
Orient Cement shares were trading at Rs 173.91, up 6.35%, compared with the previous close of Rs 163.52, tracking strong investor response to the merger announcement.
What triggered the rally in Orient Cement shares
According to a Google Preferred Source report, the board of Ambuja Cements has approved the amalgamation of ACC and Orient Cement with itself, subject to statutory and regulatory approvals, including clearance from the National Company Law Tribunal (NCLT). The scheme will also be filed with stock exchanges to obtain a no-objection certificate.
Separately, the board of Orient Cement has approved its merger with Ambuja Cements. Ambuja had acquired a majority stake in Orient Cement in April 2025, after first announcing the acquisition in October 2024.
Share swap ratios explained
Under the approved merger structure:
For ACC shareholders, Ambuja Cements will issue 328 equity shares for every 100 ACC shares held on the record date, which is yet to be announced. As of the September quarter, ACC had nearly 2.2 lakh small retail shareholders, holding a 10.56% stake in the company.
For Orient Cement shareholders, Ambuja will issue 33 shares for every 100 Orient Cement shares held on the record date. A CNBC-TV18 analysis indicated that the swap ratio is around 9% in favour of Orient Cement shareholders, a key factor driving today’s rally.
Orient Cement had over 91,000 small retail shareholders, who collectively owned 12.5% stake at the end of the September quarter.
Strategic rationale behind the merger
Management cited simplification of group structure, improved transparency and governance standards, and long-term operational efficiencies as the key reasons behind the consolidation.
The merger aligns with Ambuja’s ambition to expand cement capacity from 107 million tonnes per annum (MTPA) to 155 MTPA by FY28. In addition, the management is targeting cost savings of up to Rs 100 per tonne through supply chain efficiencies.
According to Jyoti Gupta of Nirmal Bang, additional benefits of Rs 40–50 per tonne could accrue over the next two to three years due to improved tax efficiency and working capital optimisation.
Impact on promoter shareholding
Post completion of the merger, which is expected to take up to 12 months, promoter shareholding in the consolidated entity is expected to decline to 60.9% from 67.65%, improving public float.
Stock performance context
Despite today’s sharp rally, Orient Cement shares have declined about 53% so far in 2025, while ACC shares are down 13.5% on a year-to-date basis. Ambuja Cements shares, meanwhile, have remained largely flat in 2025.
With the merger now formally approved by the boards, Orient Cement is likely to remain in focus as investors track regulatory approvals and further clarity on timelines.
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