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Business Standard
2 days ago
- Business
- Business Standard
NCLT approves merger of AEL's Adani Cementation with Ambuja Cements
The National Company Law Tribunal (NCLT) has approved the merger of Adani Cementation Limited, a wholly owned subsidiary of Adani Enterprises Limited (AEL), with Ambuja Cements Limited. "National Company Law Tribunal, Ahmedabad Bench (NCLT Ahmedabad) has on 18th July 2025 pronounced the order sanctioning the Scheme of Amalgamation of Adani Cementation Limited with Ambuja Cements Limited," Adani Enterprises said in an exchange filing. The Gautam Adani-led conglomerate had announced a consolidation of its cement businesses in June 2024. The scheme is set to take effect from April 1, 2024, once all steps in the merger agreement are completed, as stated in the 70-page NCLT order. Impact on Companies and Shareholders As part of the merger, Adani Enterprises will receive 8.7 million shares of Ambuja Cements. The swap ratio will be 174 shares of Ambuja Cements for every 1 share of Adani Cementation, the company had said in an earlier statement. The merger will be executed through share swapping. All property rights, assets, and liabilities of Adani Cementation will transfer to Ambuja Cements. The NCLT has instructed Ambuja Cements, a listed company, to "comply with all applicable regulations, circulars and directions" issued by market regulator Sebi, as well as stock exchanges BSE, NSE, and the Luxembourg Stock Exchange. Ambuja Cements' Global Depository Receipts (GDRs) are listed on the Luxembourg Stock Exchange. Rationale and Strategic Benefits The consolidation is aimed at synergising Adani Group's cement operations, enhancing value addition, and improving operational efficiencies for both companies. "The amalgamation will help the transferee company to quickly start the construction activity at various sites of the transferor company and that of the wholly-owned subsidiary of the transferor company," both companies said. Adani Cementation holds lease rights to limestone mines, approximately 275 million tonnes at Lakhpat, Gujarat, and has proposed a major manufacturing unit at Raigad, Maharashtra. Market Position and Expansion Plans Adani Group forayed into the cement sector in September 2022 by acquiring a controlling stake in Ambuja Cement from Swiss company Holcim in a $6.4 billion deal. Adani Group has ascended to become India's second-largest cement manufacturer, recently crossing 100 MTPA of capacity. Meanwhile, UltraTech Cement, which recently acquired Kesoram and India Cements, remains the country's largest, already surpassing 150 MTPA, and is ambitiously targeting over 200 MTPA by financial year (FY)27.
Time of India
2 days ago
- Business
- Time of India
NCLT approves merger of Adani Cementation with Ambuja Cements
The National Company Law Tribunal (NCLT) has approved the merger of Adani Cementation with Ambuja Cements , which will help to consolidate Adani Group's cement business under one unit and bring synergistic benefits. Earlier in June 2024, the billionaire Gautam Adani-led group announced a merger and ownership restructuring of its cement assets, which are housed under Ambuja Cements and Adani Cementation, part of Adani Enterprises. Explore courses from Top Institutes in Select a Course Category Cybersecurity Finance MBA MCA Degree Management Operations Management Design Thinking others Healthcare Artificial Intelligence Leadership Product Management Project Management CXO Others Digital Marketing healthcare Public Policy Data Science Data Science PGDM Technology Data Analytics Skills you'll gain: Duration: 10 Months MIT xPRO CERT-MIT xPRO PGC in Cybersecurity Starts on undefined Get Details Passing an order, the Ahmedabad bench of the NCLT, on July 18, sanctioned the Scheme of amalgamation of Adani Cementation with Ambuja Cements. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo "The scheme of amalgamation annexed as Annexure I to the company petition is hereby sanctioned, and it is declared that the same shall be binding on the petitioner companies and their shareholders and creditors and all concerned under the scheme," said the two-member NCLT bench. The effective date of the amalgamation will be April 1, 2024, said the 70-page-long NCLT order. Live Events The intergroup merger is based on share swapping, and Adani Enterprises will get 8.7 million shares of Ambuja Cements. The NCLT has directed Ambuja Cements , a listed entity, to "comply with all applicable regulations, circulars and directions" issued by market regulator Sebi, and bourses BSE, NSE and Luxembourg Stock Exchange. Ambuja Cements Global Depository Receipts (GDRs) are listed on the Luxembourg Stock Exchange. "All the property rights and powers of the undertaking of the transferor company (Adani Cementation) and all the other property rights and powers of the transferor company be transferred without any further act or deed to the transferee company (Ambuja Cements)," the NCLT order said. Adani Group is the second-largest Cement manufacturer in the country with over 100 million tonnes per annum (MTPA) capacity. While citing the rationale for the merger scheme, Adani Group entities said it will lead to enhanced value addition for both companies, and consequently, the value of the shareholders will increase. It will help Ambuja Cement to absorb the cement business of Adani Cementation, which will help it to enhance its manufacturing capacity more efficiently, seamlessly and economically. Besides, it will also help in improved utilisation of the combined resources of both companies, lowering the overheads and reducing compliance requirements. "The amalgamation will help the transferee company to quickly start the construction activity at various sites of the transferor company and that of the wholly-owned subsidiary of the transferor company," both companies said. Adani Cementation has lease rights of limestone mines, with resources of about 275 million tonnes at Lakhpat, Gujarat. It has also proposed to set up a manufacturing unit at Raigad, Maharashtra. Ambuja Cements, which has crossed 100 MTPA capacity in FY25 in a record time, mainly through acquisitions, now aims to reach 118 MTPA by FY 2026 and 140 MTPA by FY 2028, primarily through brownfield expansion projects. Adani Group is a new entrant in the cement sector. It entered the Cement sector in September 2022, after acquiring controlling stakes in Ambuja Cement from Swiss firm Holcim for USD 6.4 billion (about Rs 51,000 crore). Later, Ambuja Cements owns a 51 per cent stake in ACC Ltd , pursued inorganic growth, acquiring small companies as Hyderabad-based Penna Cement and Saurastra-based Sanghi Industries . Earlier this year, it also acquired Orient Cement from the CK Birla group. The Indian cement market is led by Aditya Birla Group firm UltraTech Cement Ltd , which has a consolidated capacity of 192.26 MTPA. PTI
