Adani Group Cement Consolidation Sparks Market Reaction

Shares of Sanghi Industries dropped nearly 12% following Adani Group's announcement of merging it with Penna Cement and Ambuja Cements. This merger aims to streamline operations and governance. The integration is expected to be completed within 9-12 months pending necessary approvals.

The stock market witnessed significant turbulence on Wednesday as shares of Sanghi Industries plunged nearly 12% after the Adani Group disclosed plans to merge it with Penna Cement under Ambuja Cements.

This strategic move is intended to consolidate Adani Group's cement operations into one unit, enhancing structure and governance simplicity. Sanghi Industries' shares settled at Rs 67.76 on the BSE, marking a sharp decline.

The merger, announced on Tuesday, awaits regulatory approvals and is anticipated to complete within 9-12 months. This amalgamation aims to leverage the strengths of acquired entities to compete against market leader UltraTech Cements.

(With inputs from agencies.)