ACC Board gives nod for merger of company with Ambuja Cements

The Board of ACC Ltd has approved a Scheme of Amalgamation with its parent, Ambuja Cements Limited, setting the stage for the creation of a single, scaled cement platform under the Adani Group.

Under the proposed structure,

Ambuja Cements will issue 328 equity shares for every 100 shares held by ACC shareholders, effectively folding ACC into Ambuja to simplify ownership and operations.

In its exchange filing, the Adani Group company said the amalgamation would result in a streamlined corporate framework, consolidation of assets and the unlocking of operational and financial synergies across the cement portfolio.

The transaction remains subject to approvals from the National Company Law Tribunal (NCLT) and other statutory authorities.

Post-merger, the combined cement business will command one of the largest manufacturing footprints in the country, bringing the Adani Group closer to its stated ambition of 140 million tonnes per annum (MTPA) of capacity by 2028.

Shares of ACC Ltd ended Thursday’s session at ₹1,782.50 on the National Stock Exchange, rising 1.77%, while Ambuja Cements Limited finished marginally in the green at ₹539.95.

On financial performance front, ACC reported a sharp jump in profitability for the September quarter

, with net profit rising more than five-fold year-on-year to ₹1,112 crore, compared with ₹200 crore in the same period last year.

Revenue for the quarter grew 26.4 % to ₹5,851.5 crore from ₹4,629 crore, supported by higher volumes and improved realisations.

Ambuja Cements also posted a strong set of numbers, reporting consolidated net profit of ₹1,766 crore for the September quarter, sharply higher than ₹480 crore a year earlier. The profit growth was aided by a tax write-back of ₹1,465 crore, compared with a tax expense of ₹248 crore in the year-ago period.

Revenue increased 22 % to ₹9,175 crore from ₹7,552 crore, which the company described as its highest-ever topline for a second quarter.