Ambuja Cements Ltd Share Price – NSE  / BSE

Cement, Mid Cap

Sanghi Industries operates a large, fully integrated cement plant in Kutch, Gujarat, which includes a 6.6 MMTPA clinker plant, a 6.1 MMTPA cement plant, and a 130 MW captive power plant, among other facilities. Both Sanghi and Ambuja Cements are part of the Adani Group. Its revenue was Rs 821.35 crore in FY24..

Penna Cement Industries operates four integrated plants in Andhra Pradesh and Telangana, along with a grinding unit in Maharashtra, with 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 the next 8-12 months. Penna Cement also owns five bulk cement terminals in Kolkata, Gopalpur, Karaikal, Kochi, and Colombo (Sri Lanka).

Ambuja Cements holds 58.08% in Sanghi Industries and 67.53% in Penna Cement Industries.

The scheme will enable the Ambuja Cements to integrate the Sanghi Industries and Penna Cement Industries’ operations, leading to more efficient and economical business management. This includes better resource utilization, reduced overheads, cost savings, economies of scale, elimination of duplicated efforts, and streamlined compliance requirements through amalgamation.

For every 100 equity shares of SIL with a face value of Rs 10 each, Ambuja Cements will issue 12 equity shares with a face value of Rs 2 each, to eligible shareholders of SIL.

The said scheme of amalgamation will be completed within 9-12 months.

Ajay Kapur, CEO, Cement Business, Adani Group, said, “This merger aims to make our company more competitive and efficient, ultimately enhancing shareholder value. Enhanced working capital management and internal funds will support the growth of our business operations. Unified cash flow management will pool resources for faster expansion and cost savings in administration and governance, thereby simplifying compliance requirements. This advancement through a larger entity will increase market competitiveness and deliver greater value to our shareholders.”

Ambuja Cements is a major cement producing company in India. The principal activity of the company is to manufacture and market cement and clinker for both domestic and export markets.

The cement major’s consolidated net profit slipped 52.1% to Rs 472.89 crore in Q2 FY25 as against Rs 987.24 crore recorded in Q2 FY24. However, revenue from operations rose 1.24% YoY to Rs 7,516.11 crore in the quarter ended 30 September 2024.

Shares of Ambuja Cements fell by 1.11% to Rs 564.60. Meanwhile, Sanghi Industries saw a sharp decline of 11.15%, with its shares dropping to Rs 68.34 on the BSE.

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The key equity indices traded with minor losses in early trade. The Nifty slipped below the 24,350 mark. Auto, PSU Bank and Realty shares declined while Pharma, IT and FMCG shares advanced.

At 09:29 IST, the barometer index, the S&P BSE Sensex was down 101.17 points or 0.13% to 80,583.28. The Nifty 50 index lost 19.05 points or 0.08% to 24,316.95.

In the broader market, the S&P BSE Mid-Cap index declined 0.26% and the S&P BSE Small-Cap index fell 0.22%.

The market breadth was negative. On the BSE, 1,472 shares rose and 1,553 shares fell. A total of 110 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 6,409.86 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,706.48 crore in the Indian equity market on 13 December 2024, provisional data showed.

Stocks in Spotlight:

Ambuja Cements added 0.28%. The company has announced scheme of arrangement of its subsidiaries Sanghi Industries (SIL) and Penna Cement Industries (PCI). For every 100 equity shares of SIL with a face value of Rs 10 each, Ambuja Cements will issue 12 equity shares with a face value of Rs 2 each, to eligible shareholders of SIL.

Piramal Enterprises shed 0.89%. The company’s administrative committee will hold a meeting on Friday to consider and approve the public issuance of non convertible debentures.

Alkem Laboratories rose 1.23%. The company along with its arm Enzene Biosciences entered into a share subscription and shareholders’ agreement with Sunsure Solarpark Twenty-Two and Sunsure Energy for equity investment in Sunsure solarpark.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.05% to 6.866 as compared with previous close 6.870.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 84.9200, compared with its close of 84.9125 during the previous trading session.

MCX Gold futures for the 5 February 2024 settlement slipped 0.03% to Rs 76,845.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.02% to 106.93.

The United States 10-year bond yield gained 0.16% to 4.392.

In the commodities market, Brent crude for February 2024 settlement added 02 cents, or 0.03% to $73.21 a barrel.

Global Markets:

Most Asian shares rose on Wednesday, shrugging off modest declines on Wall Street as investors awaited the Federal Reserve's final interest rate decision of the year. While a 25-basis-point rate cut is widely anticipated, the market is keenly focused on the Fed's outlook for next year, given the potential impact of proposed policies that could reignite inflationary pressures.

Japan's trade balance unexpectedly improved in November, supported by stronger-than-expected exports driven by increased demand from the U.S. and China and a weaker yen. The trade deficit narrowed to 117.6 billion yen ($770 million).

US indices retreated on Tuesday as investors exercised caution ahead of the rate decision, with the tech sector experiencing a slight pullback from recent gains. The S&P 500 fell 0.4% to 6050.61 points, the NASDAQ Composite lost 0.3% to 20,108.30 points, and the Dow Jones Industrial Average closed 0.6% lower at 43,449.90 points. NVIDIA Corporation dropped 1.2%, while Alphabet fell 0.5%. Pfizer rose 4.6% after confirming that its 2025 profit expectations remain largely unchanged.

Meanwhile, data showed US retail sales rose by 0.7% in November, exceeding forecasts. This robust figure suggests the economy remains strong and consumer spending remains healthy, despite challenges like inflation and high interest rates. This strength is underpinned by a solid job market and stable household finances.

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Securities in F&O Ban:

Bandhan Bank, Chambal Fertilizers, Granules India, Hindustan Copper, Manappuram Finance, National Aluminum, RBL Bank, PVR Inox shares are banned from F&O trading on 18 December 2024.

New Listing:

One Mobikwik Systems will make debut on bourses today. The IPO was subscribed 119.38 times. The issue was open between 11th December and 13th December 2024. The IPO’s price band was between Rs 265 and 279 per share.

Sai Life Sciences shares will list on stock market today. The IPO was subscribed 10.26 times. The issue opened between 11th December and 13 December 2024. The price band of the IPO is fixed at Rs 522–549 per share.

Vishal Mega Mart will make debut on bourses today. The IPO was subscribed 27.28 times. The issue was opened on 11th December and 13th December 2024. The price band of the IPO was fixed between Rs 74 and 78 per share.

Stocks to watch:

Ambuja Cements announced scheme of arrangement of its subsidiaries Sanghi Industries (SIL) and Penna Cement Industries (PCI). For every 100 equity shares of SIL with a face value of Rs 10 each, Ambuja Cements will issue 12 equity shares with a face value of Rs 2 each, to eligible shareholders of SIL.

Piramal Enterprises’ administrative committee will hold a meeting on Friday to consider and approve the public issuance of non convertible debentures.

Alkem Laboratories along with its arm Enzene Biosciences entered into a share subscription and shareholders’ agreement with Sunsure Solarpark Twenty-Two and Sunsure Energy for equity investment in Sunsure solarpark.

Aurobindo Pharma’s wholly owned subsidiary, Apitoria Pharma’s active-pharmaceutical ingredient (API) manufacturing plant in Telangana received two observations from US Food and Drug Administration (USFDA).

Jindal Saw entered into an agreement with ReNew Green Energy Solutions to acquire shareholding up to 31.2% stake in ReNew Green MHH One.

Suyog Telematics’ board will consider raising funds through equity or any other equity‐linked or convertible securities from various modes.

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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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