Adani's cement biz merger may benefit Ambuja shareholders: Analysts

ET BureauLast Updated: Dec 24, 2025, 06:07:00 AM IST

Synopsis

Analysts view the Adani Group's proposed cement business merger favorably for Ambuja Cements shareholders, simplifying the group structure and removing management complexities. Share swap ratios are seen as neutral for ACC's minority shareholders and positive for Orient Cement's. The deal is expected to streamline operations and reporting across the integrated entity.

Mumbai: Analysts see the proposed merger within the Adani Group's cement businesses as favourable for Ambuja Cements' shareholders, saying it removes the long-standing overhang of managing multiple listed cement companies and simplifies the group structure. Analysts said the share-swap ratios are neutral for ACC's minority shareholders and positive for those of Orient Cement. The proposed deal outlines a share-swap ratio of 328 Ambuja shares for every 100 shares of ACC and 33 Ambuja shares for every 100 shares of Orient Cement. A look at what some of the leading brokerages are saying about the merger deal.

Agencies

Street View Simplified, integrated operations to help the co save on costs and improve sales

Morgan Stanley

• Should be favourable for Ambuja shareholders; removes the overhang of managing multiple listed companies under Ambuja.
• Share swap ratios neutral for ACC minority shareholders and positive for Orient minority shareholders.

JP Morgan

• Integrated pan India operations should help Ambuja optimise costs and improve sale of more premium brands over time.
• Group structure should simplify materially post merger; understanding company reporting (results, volumes, margins) should become easier.

CLSA

• With ACC trading at a sharp discount to Ambuja, this implies value accretion for Ambuja shareholders
• Rating Ambuja an 'outperform', while placing a 'hold' recommendation on ACC.

Axis Cap

• Merger will not have any meaningful impact earnings estimates but will simplify corporate structure and reduce concerns on inter-company transactions.
• Announced swap ratio implies a nil upside for ACC and a 9% upside for Orient.

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