corporate restructuring

1. Merges and Acquisitions:-
Ambuja cement Rajastan
TO
Gajarat Ambuja cement ltd.

2. Gujarat ambuja cement ltd. Profile:-
TYPE PRIVATE LIMITED COMPANY
TRADED BSE- 500425 , NSE- AMBUJGUJ
INDUSTRY CEMENT
FOUNDED Mr.N.P.GHUWALEWALA
HEAD QUATERS MUMBAI
AREA SERVED INDIA
PRODUCTS CEMENT
REVENUE 7640.38 CR
TOTAL ASSETS 7395.13 CR

3. Ambuja cement Rajasthan ltd. profile:-
TYPE PRIVATE LIMIRED COMPANY
TRADED BSE- 500122, NSE- AMBUJARAJN
INDUSTRY CEMENT
FOUNDED RAJIV SINGH, T.C. GOYAL
HEAD QUARTERS RAJASTAN
AREA SERVED INDIA
PRODUCTS CEMENT
REVENUE 247.78 CR
TOTAL ASSETS 389.59 CR

4. DETAILS OF MERGES AND
ACQUISITIONS:-
• Acquiring company : Gujarat ambuja cement ltd
• Acquired company :Ambuja cement Rajasthan ltd
• Merger type: Horizontal merger
• Takeover type: Friendly takeover
• Synergies: financial synergy

5. Ambuja cement Rajasthan as a sick
company:-
• India is the 4th largest producer of cement in the
world after China, Japan, USA.
• The company is being set up in the state
Rajasthan ie., northern part of the country.
• The annual capacity was 17.77 million tons,
production capacity utilization is 83%.
• The cash flow of the company has been adversely
affected due to low margin, higher cost of
production, high distribution charges and also
high financial charges.

6. Ambuja cement Rajasthan as a sick
company:-
• 1,09,01,920 debentures under option iii were
converted into 3,81,56,720 equity shares of Rs
10 each.
• The company proposes to make a preference
allotment of 500 lakh equity shares of rs 10
each in private placement basis to Gujarat
ambuja cement ltd.

7. Process of acquisition:-
• Gujarat ambuja cement ltd has agreed to join
existing management for revival of the company.
• GACL is a leading cement company in the country.
• GACL has acquired 3,10,00,000 number of equity
shares of rs10 each for cash at par allotted to it.
• BIFR has approved merger of ambuja cement
Rajasthan in to Gujarat ambuja cement ltd.

8. Brief report:-
• Merger of ambuja cement Rajasthan ltd in to
Gujarat ambuja cement ltd has resulted in
synergy effect.
• Now they have launched their product with a
brand name as Ambuja cement .