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Adani infuses additional Rs 8,339 crore in Ambuja Cements, raises stake to 70.3 per cent

Adani Family infused additional Rs 8,339 crore, taking total infusion to Rs 20,000 crore under the warrants program.

Edited By: Arushi Jaiswal @JaiswalArushi New Delhi Published on: April 17, 2024 23:47 IST
Image Source : FILE PHOTO Representative Image

New Delhi: Billionaire Gautam Adani and his family have infused an additional Rs 8,339 crore in Ambuja Cements, raising its stake in the company to 70.3 per cent, the company said in a statement. The Adani family previously invested Rs 5,000 crore in the company on October 18, 2022, and Rs 6,661 crore on March 28, 2024. With the latest investment, it has completed Rs 20,000 crore planned infusion.

"The promoters of the company - Adani family - has fully subscribed to the warrants program in the company by further infusing Rs 8,339 crore, thereby infusing a total amount of Rs 20,000 crore. Adani family have increased their stake in the company by a further 3.6 per cent to 70.3 per cent. This follows, the investment of Rs 5,000 crore on 18 October 2022 and Rs 6,661 crore on 28 Mar 2024, which was for part issuance of the shares," it said.

In 2022, the Adani Group made a significant move into the cement sector through a substantial deal worth USD 10.5 billion. This deal involved the acquisition of Ambuja and ACC from the Swiss conglomerate Holcim.

"This strategic move underscores unwavering commitment to have a robust capital management philosophy for the portfolio companies, and the latest investment testifies the commitment by the Adani family to boost future prospects and potential of cement vertical. The additional investment will fortify the company's financial position, providing it with enhanced capabilities to pursue its ambitious growth plans and capitalise on emerging opportunities in the market," the statement said.

Ambuja to accelerate growth ambitions to almost double

The fund infusion will help Ambuja accelerate its growth ambitions to almost double its existing capacity to 140 million tonnes per annum by 2028 from 76.1 million tonnes as of December 31. "With this, promoters have further strengthened Ambuja post-acquisition, giving Ambuja capital flexibility for accelerated growth, capital management initiatives and best-in-class balance sheet strength to accomplish its various strategic initiatives," the statement said.

Further, it will also enable various strategic initiatives including debottlenecking capex to enhance operational performance, as well as bringing efficiencies across resources, and supply chain. It shall also drive innovation and product enhancement through advanced technology integration for better service offerings to tap the growing requirements of the sector driven by the growth in the Indian economy.

Ajay Kapur, Whole Time Director and CEO, Ambuja Cements Ltd. said, "We are thrilled to announce the completion of the Adani family's primary infusion of Rs 20,000 crore in Ambuja."

"This infusion of funds provides Ambuja, capital flexibility for fast-tracked growth, capital management initiatives and best-in-class balance sheet strength. It is not only a testament to a steadfast belief in our vision and business model but also reinforces our commitment to delivering long-term sustainable value creation to our stakeholders and this shall propel us towards setting new benchmarks accelerating our growth and continuing to deliver on operational excellence, business synergies and cost leadership," he added.

Barclays Bank PLC, MUFG Bank, Mizuho Bank and Standard Chartered Bank acted as advisor for the transaction.

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