India's Ambuja Cements will merge two of its recently purchased units into the company, it said on Tuesday, in a bid to streamline the structure of the Adani Group's cement businesses and simplify compliance requirements.

Investec expressed confidence in Ambuja Cements’ management and its ability to meet growth and cost-saving targets.

Factoring the growth pipeline, lease expires, promoter’s economic interest in Ambuja Cements, Investec said it prefers Ambuja Cements over ACC, another Adani group stock.

Ambuja Cements said it had completed the acquisition of Sanghi Industries Limited at an enterprise value of Rs 5,185 crore.

Investec maintains 'buy' on Ambuja Cements at a target of Rs 950 per share, an upside of 65% from the previous close.

India: Ambuja Cements will merge its recently acquired companies, Sanghi Industries and Penna Cement Industries. Ambuja Cements purchased Sanghi Industries in December 2023 and Penna Cement in August 2024.

Shares of Ambuja Cements Ltd. slipped 0.78 per cent to Rs 560.15 in Thursday's trade as of 12:48PM (IST). The stock hit a high price of Rs 562.0 and low of Rs 553.4 during the session. The return on equity (ROE) for the stock stood at 9.

Adani Group-promoted Ambuja Cements on Tuesday announced an amalgamation of its two subsidiaries – Sanghi Industries Limited (SIL) and Penna Cement Industries Limited (PCIL) – with itself. It said it has entered separate Schemes of Arrangement for the two subsidiaries.

Merger of Sanghi Industries with Ambuja Cements offers Sanghi shareholders national brand, all-India reach, and Adani group benefits; Sanghi shares drop

Adani Group will consolidate its cement operations by merging two units under Ambuja Cements Ltd. as billionaire Gautam Adani streamlines a business that is vital for India’s infrastructure push.

Sanghi Industries shares dropped 12.4% after Ambuja Cements announced a merger scheme offering 12 shares for every 100 Sanghi shares. The merger aims to enhance efficiency and streamline operations.