Ambuja Cements , a prominent player in the Indian cement industry, is set to convene a crucial shareholder meeting as it navigates through a proposed merger and faces a tax credit challenge. The company has recently received directives from regulatory authorities on both fronts, signaling significant developments for its corporate structure and financial position.

Merger Proceedings with Sanghi Industries

The National Company Law Tribunal (NCLT), Ahmedabad Bench, has instructed Ambuja Cements to hold a meeting of its equity shareholders on November 20, 2025, at 1:00 p.m. IST. This virtual meeting, to be conducted via video conference, will focus on the proposed amalgamation between Sanghi Industries Limited and Ambuja Cements Limited.

The merger proposal, initially disclosed by Ambuja Cements on December 17, 2024, is now moving forward to the shareholder approval stage. During the upcoming meeting, shareholders will have the opportunity to consider and vote on the arrangement, with the option to approve it with or without modifications.

Manish Mistry, Company Secretary & Compliance Officer of Ambuja Cements, confirmed the receipt of the NCLT order, stating, "The Company has received an Order today from the Hon'ble National Company Law Tribunal, Ahmedabad Bench, directing the Company to, inter alia, convene and hold a meeting of equity shareholders of the Company, through Video Conference/Other Audio Visual Means."

Tax Credit Dispute

In a separate development, Ambuja Cements is facing a challenge from tax authorities. The company has received an order from the Commissioner of Central Excise & CGST, Bhavnagar, disallowing Cenvat Credit (Input Tax Credit) and imposing penalties. The details of the order include:

• Disallowance of Cenvat credit amounting to Rs 21,96,26,568.00
• Imposition of interest on the disallowed credit
• A penalty equal to the disallowed credit amount, totaling an additional Rs 21,96,26,568.00

The tax credit dispute pertains to various services, including AMC Services, Business Auxiliary Services, Maintenance & Repair, Manpower Recruitment, Mobile Phone Services, Security Services, Technical Testing and Analysis, and Port-related Services at Muldwaraka.

Ambuja Cements has stated that it is "in the process of taking appropriate legal steps to file an appeal against the said order before the competent appellate authority." The company maintains that it does not foresee any material impact on its financial, operational, or other activities as a result of this order.

Looking Ahead

As Ambuja Cements prepares for the shareholder meeting on the Sanghi Industries merger, it simultaneously gears up to challenge the tax credit disallowance. These developments underscore the complex regulatory and financial landscape that major corporations navigate in India's dynamic business environment.

Investors and industry observers will be closely watching both the outcome of the merger vote and the resolution of the tax dispute, as these events could have significant implications for Ambuja Cements' future operations and financial standing in the competitive cement sector.

Ambuja Cements Limited , a prominent player in the Indian cement industry, has recently encountered a significant regulatory challenge. The company has received an order from the Commissioner of Central Excise & CGST, Bhavnagar, that blocks its CENVAT (Central Value Added Tax) credit and imposes a substantial penalty.

Order Details

The order, received on September 25, disallows CENVAT credit (Input Tax Credit) amounting to ₹21.96 crore. Additionally, it imposes a penalty of an equal amount, bringing the total financial implication to approximately ₹43.92 crore. The order also mandates the payment of interest on the disallowed credit.

Alleged Violations

According to the LODR (Listing Obligations and Disclosure Requirements) disclosure, the disallowance pertains to Input Tax Credit availed on various services at Ambuja Cement's Muldwaraka facility. These services include:

• AMC Services
• Business Auxiliary Services
• Maintenance & Repair
• Manpower Recruitment
• Mobile Phone Services
• Security Services
• Technical Testing and Analysis
• Port-related Services

Company's Response

Ambuja Cements has stated that it is in the process of taking appropriate legal steps to appeal against the order. The company plans to file an appeal before the competent appellate authority, demonstrating its intent to challenge the decision.

Financial Impact

While the order involves a significant amount, Ambuja Cements has expressed confidence in its position. In its disclosure, the company stated, "The Company does not foresee any material impact on financial or operational or other activities of the Company." This suggests that Ambuja Cements believes it has a strong case for appeal and is prepared to manage any potential financial implications.

Market Implications

As one of India's leading cement manufacturers, any regulatory action against Ambuja Cements is likely to be closely watched by industry observers and investors. The company's decision to appeal and its assertion of minimal material impact may help in maintaining market confidence.

The outcome of this case could have broader implications for the interpretation and application of CENVAT credit rules in the cement industry and potentially other sectors as well.

Investors and stakeholders will be keenly awaiting further updates on the appeal process and any potential resolutions to this regulatory challenge faced by Ambuja Cements.