NCLT clears Ambuja-Sanghi merger, paving way for smoother expansion and bigger cement play

The National Company Law Tribunal (NCLT) has approved the merger of Sanghi Industries with Adani Group-owned Ambuja Cements

, clearing a key step in Ambuja’s consolidation strategy.

In an exchange filing on Monday, Ambuja Cements said the Ahmedabad bench of the NCLT pronounced its order on February 9, 2026, sanctioning the scheme of amalgamation between the two companies and their respective shareholders and creditors.

The tribunal noted that the scheme is in the public interest, enhances operational efficiency, consolidates resources, and does not prejudice the rights of shareholders, creditors, or statutory authorities.

Under the approved scheme, April 1, 2024 has been fixed as the appointed date. The merger will take effect after completion of all procedural and regulatory formalities. Ambuja said it will update the stock exchanges once the scheme becomes effective.

As per the merger terms, shareholders of Sanghi Industries will receive 12 equity shares of Ambuja Cements (face value ₹2 each) for every 100 equity shares of Sanghi Industries (face value ₹10 each) held. Following the amalgamation, eligible Sanghi shareholders will become shareholders of Ambuja Cements.

Ambuja Cements, which is already the promoter of Sanghi Industries with a 58.08% equity stake, had completed the acquisition of Sanghi at an enterprise value of about ₹5,185 crore.

The acquisition was concluded in December 2023, while the board approved the merger in December 2024 as part of a broader consolidation plan that also includes the proposed merger of Penna Cement Industries.

The company has said the amalgamation will allow it to fully absorb Sanghi’s business, streamline organisational structures, eliminate duplication, simplify compliance, and improve efficiency and cost management through economies of scale.

Sanghi Industries operates clinker capacity of 6.6 million tonnes per annum (MTPA) and cement capacity of 6.1 MTPA, backed by limestone reserves of around one billion tonnes. Its Sanghipuram facility in Gujarat is among the largest single-location cement and clinker plants in India, with an integrated captive jetty and power plant.

Following a series of acquisitions and mergers, Ambuja Cements is targeting cement capacity of around 140 MTPA by FY28, with the consolidation expected to strengthen cash flows, support faster expansion, and enhance long-term shareholder value.

Shares of Ambuja Cement ended today's trade 2.5% higher at ₹542.70 on the NSE.