Sagar Cements Completes Board Approval for Merger with Andhra Cements Ltd.

Sagar Cements Completes Board Approval for Merger with Andhra Cements Ltd.​

Sagar Cements Limited has approved a Scheme of Amalgamation involving its subsidiary, Andhra Cements Limited (ACL). The merger aims to achieve complete operational integration and strategic alignment within the cement manufacturing business, creating a more streamlined corporate structure for the combined entity.

The Board of Directors, during a meeting held on June 5, 2026, reviewed and approved the Scheme, which involves merging Andhra Cements Limited (the Transferor Company) with Sagar Cements Limited (SCL, the Transferee Company). This consolidation is expected to deliver improved operational efficiencies, enhanced value creation, and greater market competitiveness.

The rationale behind the amalgamation includes gaining full ownership and complete control over ACL’s operations, which currently manufactures cement under SCL's brand name. By integrating both entities' manufacturing and commercial functions, the company aims to streamline branding, marketing, and distribution processes. The integration will consolidate all business functions into a single operating framework, facilitating cost rationalization and effective deployment of resources such as logistics infrastructure and raw materials.

The proposed amalgamation is expected to significantly boost SCL’s competitive positioning by creating a unified entity capable of leveraging economies of scale. This unification will improve access to expanded marketing networks and distribution channels, ultimately enabling the realization of growth potential for both companies.

Transaction Details and Company Profiles​

The scheme involves no cash consideration; instead, upon its effectiveness, Sagar Cements Limited will issue new equity shares to the eligible shareholders of Andhra Cements Limited (other than SCL). The share exchange ratio has been set at 29 equity shares of SCL for every 98 equity shares of ACL.

The transaction was structured based on a Valuation Report provided by M/s BOO Valuation Advisory LLP and received a Fairness Opinion from Anand Rathi Advisors Limited, confirming the fairness of the recommended share exchange ratio.

Key details regarding both companies prior to the merger are summarized below:

Operational Scope​

Both companies are engaged in the manufacturing and selling of cement and related products. ACL operates its cement manufacturing and power generation facilities at Sri Durga Cement works, Dachepalli, Palnadu District, Andhra Pradesh. SCL is identified as one of India's leading cement manufacturers with a consolidated installed capacity.

Shareholding Pattern Post-Merger​

The merger will result in changes to the shareholding pattern of Sagar Cements Limited (SCL). The following details represent the pre-merger and post-merger share structure:

SAGCEM Stock Price Movement​

Today, shares of Sagar Cements Limited edged higher, settling at ₹179.49 after gaining 1.00%. The stock traded within an intraday range of ₹175.55 to ₹180.1, with a total volume of 54,933 shares recorded today.