New Delhi: Shares of Orient Cement jumped nearly 10 per cent on Tuesday morning trade as Ambuja Cements Ltd will merge its subsidiaries ACC Ltd and the company with itself, leading to the setting up of 'one cement platform' and a pan-India cement powerhouse.
Orient Cement's stock jumped 9.85 per cent to Rs 180 on the BSE. The stock of Ambuja Cements climbed 4.30 per cent to Rs 563.25Shares of ACC Ltd also went up by 1.47 per cent to Rs 1,802. Post-merger of the subsidiaries - ACC Ltd, Orient Cement, Penna Cement and Sanghi Industries "will become an integral part of Ambuja" with a capacity of 107 million tonnes per annum.
The board of Ambuja Cements Ltd (ACL) on Monday approved the scheme of amalgamation of merging ACC and Orient Cement. "The merger will unlock greater operational efficiencies, optimise manufacturing and logistics, and enable efficient capital deployment. These improvements will boost profitability, support capacity expansion, and enhance long-term shareholder returns," said ACL in a statement.
As per the scheme, for every 100 equity shares of ACC with a face value of Rs 10 each, Ambuja will issue 328 equity shares with a face value of Rs 2 each to eligible shareholders of ACC. Also, for every 100 equity shares of Orient Cement with a face value of Re 1 each, Ambuja Cements will issue 33 equity shares with a face value of Rs 2 each, to eligible shareholders of Orient Cement.
The "merger of Sanghi and Penna with Ambuja" was approved by ACL board in December last year, and the process is "currently under statutory approval," the company informed.
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