Ambuja Cements Limited has informed the Exchange about Sanction of Scheme of Arrangement between Penna Cement Industries Limited and Ambuja Cements Limited and their respective shareholders.
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The NCLT Ahmedabad has sanctioned the Scheme of Amalgamation merging Penna Cement Industries Limited (Transferor) into Ambuja Cements Limited (Transferee). Ambuja already holds 99.92% of Penna Cement's equity, having acquired the stake on August 16, 2024, which is the Appointed Date for the scheme. Minority shareholders of Penna will receive cash consideration of Rs. 321.50 per equity share (face value Rs. 10), to be paid within 30 days of the Effective Date. The equity shareholders of Ambuja approved the scheme with 99.9997% votes in favor, with only 6,221 shares voted against out of over 2.23 billion valid votes. The scheme will become effective upon completion of the remaining procedural steps, and Ambuja will update the exchanges accordingly.
This is a corporate simplification step that folds a 99.92%-owned subsidiary into Ambuja Cements, which should streamline operations, reduce compliance overheads, and deliver cost efficiencies. There is no share dilution for Ambuja shareholders since the consideration is in cash, so existing shareholders are unaffected. The market impact is expected to be neutral to mildly positive due to improved operational efficiency.