Ambuja Cements has received a reaffirmed Buy rating from Antique Stock Broking, with the brokerage maintaining its target price of ₹690.00. This unchanged recommendation signals continued confidence in the cement manufacturer's investment appeal.

Brokerage Recommendation Details

The key aspects of Antique's recommendation are outlined below:

Investment Outlook

The maintained Buy rating suggests that Antique Stock Broking continues to view Ambuja Cements as an attractive investment opportunity. The unchanged target price of ₹690.00 indicates the brokerage's assessment of the stock's fair value remains consistent with its previous evaluation.

This recommendation reflects the brokerage's analysis of the company's fundamentals and market position within the cement sector. The Buy rating typically indicates that the brokerage expects the stock to outperform the broader market or deliver positive returns for investors.

ACC Limited shareholders have approved the company's amalgamation with Ambuja Cements Limited, confirming the 328:100 share exchange ratio previously announced by the Ambuja Cements board. This approval represents a crucial milestone in the dual merger scheme that will create a unified "One Cement Platform" within the Adani group's cement operations.

Merger Approval and Share Exchange Details

The amalgamation scheme, originally approved by Ambuja Cements' board on December 22, has now received ACC shareholder approval. Under the approved terms, Ambuja Cements will issue 328 shares for every 100 shares held in ACC Limited.

Dual Merger Strategy

The ACC merger forms part of Ambuja Cements' comprehensive consolidation strategy, which includes a simultaneous merger with Orient Cement Limited at a 33:100 share exchange ratio. Both amalgamation schemes operate under Sections 230 to 232 of the Companies Act, 2013.

Strategic Benefits and Capacity Expansion

The consolidation is designed to deliver significant operational synergies and cost optimization benefits. Karan Adani, Non-Executive Director of Ambuja Cements Limited, emphasized: "This consolidation represents a transformational step in building a globally competitive, integrated cement and building materials organisation."

Combined Operational Capacity

Post-merger, the unified entity will operate significant manufacturing capacity across multiple regions, with ACC contributing 40.40 MTPA to the combined 107.00 MTPA current capacity.

Regulatory Timeline and Next Steps

The merger schemes will be filed with stock exchanges for obtaining No Objection Letters as required under Regulation 37 of SEBI Listing Regulations. Subject to requisite approvals including creditors, SEBI, and NCLT, the transactions are expected to be completed over the next twelve months. No Competition Commission of India approval is required as these are intra-group mergers.

The unified entity will continue operating the established Adani Ambuja Cements and Adani ACC brands in their respective markets, ensuring continuity while benefiting from enhanced operational scale and financial strength.