The Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) have issued no objection to the proposed merger between Adani Group and Ambuja Cements. The merger will see Adani group’s cement business, including its 63.5% stake in Ambuja Cements, being transferred to the newly formed entity. The merged entity will be called Adani Cement.
The exchange’s approval is a significant step forward in the proposed merger, which was announced in February 2022. The deal is expected to create one of the largest cement companies in the country, with a combined turnover of over Rs. 18,000 crore (approximately 2.5 billion USD). The combined entity will have a cement production capacity of over 62 million tonnes and a total assets of around Rs. 50,000 crore. The merger is expected to benefit Ambuja Cements’ shareholders, as they will receive one Adani Cement share for every 1.45 Ambuja Cements shares. The merger is subject to regulatory approvals, including from the Securities and Exchange Board of India (SEBI).