Jan 02, 2025 (MENAFN via COMTEX) --
(MENAFN - IANS) Mumbai, Jan 2 (IANS) Ambuja Cements Ltd has received an observation letter with 'no objection' from the National Stock Exchange (NSE) and 'no adverse observations' from Bombay Stock Exchange (BSE) with regards to merger with Adani Cementation Ltd.
The proposal for a merger between Adani Cementation and Ambuja Cements had received approval from the board in June 2024.
According to the stock exchange circular on January 1, "The Scheme remains subject to various statutory and regulatory approvals and of the respective shareholders and creditors (where applicable) of the companies involved in the scheme."
"Based on the draft scheme and other documents submitted by the Company, including undertaking given in terms of Regulation 11 of SEBI Regulations, 2015, we hereby convey our"No objection" in terms of Regulation 37 of SEBI Regulations, 2015, to enable the Company to file the draft scheme with NCLT," read the circular.
Adani Group's cement arm, Ambuja Cement, is poised for robust growth. The company has set an ambitious goal of reaching 140 million tonnes per annum (MTPA) by 2028.
By this move, Ambuja Cements is set to boost efficiency, enhance competitive strength and simplify compliance processes.
To achieve this target, Ambuja Cement acquired Orient Cement Ltd (OCL) at an equity value of Rs 8,100 crore in October last year. The company announced the acquisition of 46.8 per cent shares of OCL from its current promoters and certain public shareholders and the acquisition will be fully funded through internal accruals.
Ambuja, with its subsidiaries ACC Ltd, Penna Cement Industries Ltd and Sanghi Industries Ltd, has taken the Adani Group's cement capacity to 88.9 MTPA, with 20 integrated cement manufacturing plants, 20 cement grinding units and 12 bulk terminals across the country.
Ambuja Cements shares were trading at Rs 545.60, up 1.30 per cent, on Thursday.
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