Sanghi Industries shares tumble nearly 13 pc

New Delhi, Dec 18 (PTI) Shares of Sanghi Industries on Wednesday tumbled nearly 13 per cent following news that the Adani Group will merge the firm and Penna Cement with Ambuja Cements to consolidate cement operations in one unit.
     The stock tanked 12.35 per cent to Rs 67.42 -- its 52-week low -- on the BSE.
     At the NSE, it slumped 12.86 per cent to Rs 67.01 -- the 52-week low.
     Adani Group will merge its recently acquired Sanghi Industries and Penna Cement with Ambuja Cements to consolidate cement operations in one unit, the conglomerate said Tuesday.
     Ambuja Cements, on Tuesday, announced separate schemes of arrangement of its subsidiaries Saurashtra-based Sanghi Industries (SIL) and Andhra Pradesh-based Penna Cement Industries Limited (PCIL).
     "This consolidation will help to streamline the organisation structure and simplify compliance requirements for effective governance," said a statement from the country's second-largest cement maker.
     This will also help billionaire Gautam Adani's cement arm to leverage the combined strengths of the acquired entities, as it is competing with the Aditya Birla Group firm UltraTech Cements, a market leader in the segment.
     The board of Ambuja Cement, in a meeting held on Tuesday, approved the scheme of arrangement with Sanghi Industries and Penna Cement Industries.
     The Adani group firm, which also owns ACC Ltd, said the amalgamation is subject to requisite approvals and expects the transaction to be completed within 9-12 months.
     Ambuja Cements holds 58.08 per cent of the paid-up equity share capital of Sanghi Industries. It acquired the company in December 2023.

(This story has not been edited by THE WEEK and is auto-generated from PTI)