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Ambuja and Orient Cement shares jumped up to 10% on merger optimism, while ACC slipped into the red as brokerages weighed in on the deal’s impact
Cement
Ambuja Cements-ACC-Orient Cement Merger: Shares of Ambuja Cements and Orient Cement surged in trade on December 23 after brokerages turned bullish following the companies’ announcement that their boards have approved a merger scheme involving the two Adani Group entities. ACC, however, traded in the red.
Ambuja Cements shares climbed over 4 per cent to Rs 563.50 apiece, marking their highest level in more than a month. Orient Cement shares jumped nearly 10 per cent to around Rs 179 apiece, also hitting a one-month high. Both stocks extended their rally for a third straight session.
In contrast, ACC shares slipped nearly 2 per cent to trade at about Rs 1,752 apiece in morning trade.
What the Ambuja–ACC–Orient merger means for shareholders
Ambuja Cements said that under the merger, eligible ACC shareholders will receive 328 shares of Ambuja Cements for every 100 shares of ACC, translating into a share-swap ratio of 328:100.
Similarly, eligible Orient Cement shareholders will receive 33 shares of Ambuja Cements for every 100 shares of Orient Cement, implying a share-swap ratio of 33:100.
The record date for the merger schemes is yet to be announced.
Morgan Stanley on Ambuja Cements
Morgan Stanley maintained an ‘Overweight’ rating on Ambuja Cements with a target price of Rs 650 per share, implying an upside of over 20 per cent from the previous closing price of Rs 539.95.
The brokerage said the share-swap ratios of 328:100 with ACC and 33:100 with Orient Cement are neutral for ACC’s minority shareholders and positive for Orient’s minority shareholders.
It added that synergies from the merger are expected to drive operational efficiencies, unlocking at least Rs 100 per tonne in cost improvements. The move is also viewed positively as it removes the overhang of managing multiple listed entities.
CLSA on Ambuja Cements and ACC
CLSA said the amalgamation of ACC and Orient Cement with Ambuja Cements is likely to deliver around 10 per cent value accretion for shareholders. It noted that ACC’s sharp discount and prolonged underperformance versus Ambuja support value accretion for Ambuja shareholders.
The brokerage retained an ‘Outperform’ rating on Ambuja Cements with a target price of Rs 680 per share, indicating an upside of nearly 26 per cent from the previous close.
For ACC, CLSA maintained a ‘Hold’ rating with a target price of Rs 2,035 per share, implying an upside of over 14 per cent from the stock’s previous closing price.
Other brokerage views
Emkay said the transaction appears neutral with a slight negative bias for ACC shareholders, while being mildly positive for Orient shareholders.
JPMorgan noted that pan-India operations should help Ambuja Cements optimise costs and improve the sale of higher-margin premium brands over time, adding that the company plans to continue operating both the Ambuja and ACC brands post-merger.
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December 23, 2025, 11:30 IST
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