Ambuja to merge AEL's assets with self

On Thursday, the Adani group revealed a merger and ownership reorganization of its cement assets within Ambuja Cements and Adani Enterprises. According to the plan, Adani Cementation will be merged with Ambuja and Adani Cement Industries will be under the full ownership of Ambuja Cements.

Ambuja Cements will offer Adani Enterprises with shares instead of assets as consideration. At present, Adani Enterprises fully owns Adani Cementation which in turn fully owns Adani Cement Industries.

The swap ratio will be 174 shares of Ambuja Cements for every share of Adani Cementation, which is 87 lakh shares of Ambuja Cements for 50,000 shares of Adani Cementation.

Ambuja Cements was being traded at a price of ₹660.55 per share on the stock markets when the market closed on Thursday.

According to the company presentation, Adani Cementation owned a 2.5 million tonnes per annum (MTPA) grinding unit in Raigad, Maharashtra that was still under development, in addition to a captive jetty and limestone reserves.

Adani Cement Industries currently has a grinding capacity of 1.3 MTPA in Dahej, Gujarat with a planned expansion of 1.20 MTPA.