Mumbai, May 3 (UNI) Gujarat Ambuja Cements Ltd.'s board today proposed the merger of Ambuja Cement Eastern Ltd (ACEL) with the company, the company has informed the Bombay Stock Exchange(BSE).
As per proposal four equity shares of the Gujarat Ambuja Cements of Rs 2 each would be issued for every five equity shares of Rs 10 each of ACEL.
Gujarat Ambuja Cements will issue about 15.40 crores equity shares of Rs 2 each to the shareholders of ACEL, the company said.
The fully diluted equity capital of the company would increase from Rs 271.02 crore to Rs 301.81 crore, dilution of about 10.2 per cent.
The record date of merger has been fixed as January 01, 2006, the company informed BSE.
With this merger, the cement capacity of Gujarat Ambuja Cements would go up to about 16 million tonnes.
ACEL brand's reach is in West Bengal and Chhattisgarh and could aid Gujarat Ambuja's reach in the most growing cement markets, the company added.
Currently, the company has presence in the northern and the western markets. The company would now have its presence in most parts of the country except south.
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