Q&A filed on merging ACC and Orient Cement into Ambuja Cements
AMBUJACEM · price
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On the reaction day the stock moved 1.1 pts more than Nifty 100 and 1.1 pts more than its Cement & Cement Products peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Ambuja filed a Capital Market Q&A on the amalgamation of subsidiaries ACC and Orient Cement into itself. Swap ratio: 328 Ambuja shares per 100 ACC shares, and 33 per 100 Orient shares. As an intra-group merger, no CCI approval or open offer required. Promoter holding will drop from 67.65% to about 60.94%. Combined capacity: 107 MTPA. Completion targeted in about 12 months, pending NCLT and other approvals.
Simplifies group structure, adds capacity, may lift margins by over Rs 100 per tonne. No open offer for minority shareholders.