Ambuja Cement merger: Why Orient Cement shares rally 10% today

Shares of Orient Cement jumped 10 per cent at the opening tick on Tuesday after the Adani Group company announced a scheme of amalgamation with Ambuja Cements. The company board of Orient Cement approved the scheme on Monday, December 22, said the company in an exchange filing.

"Upon the Scheme becoming effective, the transferee company (Ambuja Cements) will issue and allot to the equity shareholders of the transferor company (Orient Cement) 33 equity shares of the face value of Rs 2 each credited as fully paid-up, for every 100 equity shares of the face value of Re 1 each fully paid-up held by shareholders in the transferor company," said the filing.

In simpler terms, Shareholders of Orient Cement will get 33 equity shares of Ambuja Cement for every 100 equity shares held by them. No cash consideration is involved in the scheme, said the company. Orient Cement is a listed subsidiary of Ambuja Cement, which will also merge ACC into it.

At the open, shares of Orient Cement Ltd jumped 9.86 per cent to Rs 180 on Tuesday, with its total market capitalization nearing Rs 3,700 crore. The stock was settled at Rs 163.85 on Monday. It has dropped more than 50 per cent from its 52-week high at Rs 362.05, hit in April 2025. The stock its 52-week low at Rs 150.50 earlier this month.

According to the shareholding pattern for the quarter ended on September 30, 2025, Ambuja Cements owned 72.66 per cent stake in the company. Mutual Funds, AIFs, banks and insurance companies owned 2.14 per cent stake in it. More than 91,150 retail investors owned 12.93 per cent stake in the company as of the given date.

Emkay Global viewed the transaction as mildly positive for Orient Cement shareholders, implying around a 9 per cent premium to the prevailing share price. Motilal Oswal said that the integration of acquired assets, including Orient Cement, Penna and Sanghi Industries, had progressed well.