Ambuja Cements, led by Gautam Adani, is set to consolidate its cement operations by merging two of its recent acquisitions, Sanghi Industries and Penna Cement Industries. The move follows Adani’s acquisition of Sanghi in December 2023 and Penna in August 2024.
After the merger, the Adani family’s stake in Ambuja will see a slight reduction from 68% to 67%, while the shareholding of the public will rise from 32% to 33%. Currently, Ambuja owns a 58% stake in Sanghi, with Ravi Sanghi and family controlling 17% and the public holding 25%. Ambuja also has a near-complete stake in Penna Cement, owning 99.94%, with minority shareholders holding the rest.
According to the merger terms, non-Ambuja shareholders will receive 12 Ambuja shares (face value Rs 2) for every 100 Sanghi shares (face value Rs 10). Following the merger, Ravi Sanghi and family will be reclassified as public shareholders of Ambuja. Additionally, regulatory filings clarify that certain Sanghi promoter group members will limit their voting rights to below 10% and will neither hold special rights in Ambuja nor have board representation.
Ambuja plans to buy Penna shares from minority shareholders at Rs 322 per share. The merger valuation was conducted by GT Valuation Advisors and IDBI Capital Market & Securities and will require various regulatory clearances, including approval from the company law tribunal.
The consolidation aims to align operations, reduce costs, and streamline compliance requirements. Ambuja stated that integrating the three firms, which operate in the same sector, will enhance operational efficiency, achieve economies of scale, and strengthen its position in the cement industry.
