Ambuja Cement Share Price Surges 4% After ACC, Orient Cement Merger Into Parent Entity

The share price of Ambuja Cements rose 4.3% to hit Rs 563.25 on Tuesday, December 23, after its board of directors gave nod to merge Orient Cement, and ACC, leading to the formation of a "one cement platform" with a nation wide scale.

ACC and Orient Cement said on December 22 that their boards have cleared proposals to merge their respective businesses into Ambuja Cements.

On this merger, the Adani Group entity said this consolidation would allow better use of manufacturing and logistics networks, a simpler corporate structure, a stronger balance sheet and more efficient capital deployment to support growth and reinforce market leadership.

What Does This Merger Mean For ACC & Orient Cement Shareholders?

This amalgamation is expected to reach its conclusion in 12 months and witness Ambuja issue 328 equity shares with a face value of Rs 2 each for every 100 equity shares of ACC with a face value of Rs 10 each, to eligible ACC shareholders. For every 100 equity shares of Orient Cement with a face value of Rs 1 each, Ambuja will issue 33 equity shares with a face value of Rs 2 each, to eligible Orient Cement shareholders. 

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Pinning operational enhancement from this merger, Ambuja said It will also optimise costs and improve margins by at least Rs 100 per metric tonne. The initiative aligns with the company’s plan to increase cement production capacity from 107 million tonnes per annum (MTPA) to 155 MTPA by FY28, facilitating efficient capital allocation and faster adaptation to market requirements. 

Karan Adani On Ambuja Led Cement Merger With ACC & Orient Shareholders 

Karan Adani, non-executive director, Ambuja Cements, said, “This consolidation represents a transformational step in building a globally competitive, integrated cement and building materials organisation. By bringing Ambuja Cements, ACC and Orient Cement under a single corporate structure, we are strengthening our ability to drive operational excellence, accelerate growth, and deliver sustainable long-term value.”

Further, he said that the merger builds on the group’s track record to drive efficiency and productivity, and that a robust balance sheet positions the unified entity to support future growth initiatives.