Corporate News
Sanghi Industries and Penna Cement Industries to merge into Ambuja Cements As on : 17-Dec-24  19:29

Ambuja Cements announced separate Schemes of Arrangement of its subsidiaries Sanghi Industries (SIL) and Penna Cement Industries (PCIL). The proposed Schemes inter alia provide for the Amalgamation of SIL and PCIL with Ambuja Cement.

SIL has a clinker capacity of 6.6 MTPA, cement capacity of 6.1 MTPA, and limestone reserves of ~1 billion tonnes. SIL's Sanghipuram plant is India's largest single-location cement and clinker unit by capacity, with a captive jetty and captive power plant.

Penna has four integrated plants in Andhra Pradesh and Telangana, along with a grinding unit in Maharashtra. It has an operational capacity of 10 MTPA. Additionally, two plants, with a capacity of 2 MTPA each, are under construction in Krishnapatnam and Jodhpur, expected to be completed within next 8-12 months. It also has five bulk cement terminals at Kolkata, Gopalpur, Karaikal, Kochi, and Colombo (Sri Lanka).

Ambuja Cements will issue 12 equity shares of the face value of Rs. 2/- each for every 100 equity shares of SIL of face value Rs. 10/- each as recommended by the valuers and accepted by the Board and thereby, the eligible shareholders of SIL will become the shareholders of Ambuja Cements.

These transactions will be effected with requisite approvals from related stakeholders and authorities, anticipated to be completed within 9-12 months' time.

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