Ambuja Cement Merges ACC & Orient: Shares Jump Up to 10% for Investors

Shares of Ambuja Cement and Orient Cement surged on December 23 after the group said it will merge ACC and Orient Cement into a single cement platform.

Merger announcement

The Adani‑led cement businesses will combine under Ambuja Cement, creating a consolidated entity with a total capacity of about 107 million tonnes per year. The plan is to simplify the group structure and improve efficiency across manufacturing and logistics.

Share‑swap ratios

• For every 100 shares of ACC (₹10 face value), shareholders will receive 328 new Ambuja shares (₹2 face value).
• For every 100 shares of Orient Cement (₹1 face value), shareholders will receive 33 new Ambuja shares (₹2 face value).

Stock market reaction

Ambuja Cement’s share price rose about 4.3% to ₹563.25, while Orient Cement jumped 9.8% to ₹180. ACC, however, slipped 1.7% as investors adjusted to the restructuring.

Analyst view

Motilal Oswal kept a positive stance, noting the larger scale, balanced capacity mix, and expected profit improvement. They value the combined entity at about 20× September‑2027 estimated EV/EBITDA, implying a target price near ₹750.

Key takeaways

• The merger aims to cut costs and lift margins by roughly ₹100 per tonne.
• It creates a “One Cement Platform” with a stronger balance sheet and better capital allocation.
• Investors in Ambuja, ACC and Orient should see their holdings converted to Ambuja shares according to the swap ratios.

Disclaimer

Remember, this is perspective, not a prediction. Do your own research and consider consulting a certified financial advisor before making any investment decisions.