Ambuja Cements is set to strengthen its position in the cement industry by merging its recent acquisitions, Sanghi Industries and Penna Cement Industries. Under the leadership of Gautam Adani, the company acquired Sanghi in December 2023 and Penna in August 2024.

Following the completion of the merger, the Adani family’s stake in Ambuja will slightly decrease from 68% to 67%, while public shareholders’ ownership will rise to 33% from 32%. Currently, Ambuja holds a 58% stake in Sanghi, with the Sanghi family, led by founder Ravi Sanghi, owning 17%, and the remaining 25% held by public shareholders. In Penna Cement, Ambuja has almost full control, owning 99.94%, with just 0.06% held by minority investors.

The merger deal includes a provision whereby non-Ambuja shareholders will receive 12 shares of Ambuja (face value of Rs 2 each) for every 100 shares of Sanghi (face value of Rs 10 each). Post-merger, Ravi Sanghi and his family will be reclassified as public shareholders of Ambuja, with a stipulation that certain shareholders of Sanghi will not hold more than 10% of the voting rights in Ambuja and will not have any special privileges or representation on Ambuja’s board.

Ambuja will also acquire shares from Penna’s minority shareholders at Rs 322 per share (face value of Rs 10). The merger, which is subject to regulatory approvals including clearance from the company law tribunal, is expected to improve operational efficiency by combining the three companies, reducing costs, achieving economies of scale, and streamlining compliance processes.