Sanghi Industries Limited’s shares fell over 10% in today’s session following Ambuja Cements’ announcement to merge its subsidiaries, Sanghi Industries (SIL) and Penna Cement, into the parent company.
Key Developments:
- Share Swap Ratio: For every 100 equity shares of Sanghi Industries with a face value of ₹10, Ambuja Cements will issue 12 equity shares of ₹2 each.
- Market Reaction: Sanghi Industries’ stock price declined 10.27% to ₹69 per share, reflecting investor concerns over the deal structure.
- Ambuja’s Acquisition Details:
- Ambuja Cements, owned by the Adani Group, completed its acquisition of Sanghi Industries in December 2023 for an enterprise value of ₹5,185 crore.
- Ambuja further acquired Penna Cement Industries in June 2024 for ₹10,422 crore, raising Adani Cement’s market share by 8%.
The merger aims to streamline Ambuja’s organizational structure and simplify compliance for improved governance. This consolidation will enable efficient resource management, cost savings, and better market competitiveness under the Adani Group umbrella.
Sanghi Industries’ Performance:
- Stock Performance Overview:
- 1-Day Drop: -10.27%
- 5-Day Loss: -13.91%
- 1-Month Loss: -15.83%
- Year-to-Date: -45.67%
- 1-Year Decline: -48.83%
Despite the sharp short-term fall, Sanghi shares have shown 89.30% gains over 5 years and a modest 3.27% all-time growth.
Next Steps:
The merger is subject to regulatory and shareholder approvals, with the deal expected to close in 9-12 months.
