Adanis cement hold on Ambuja, infuse ₹8,339 crore
The Adani family, led by billionaire businessman Gautam Adani, on Wednesday said that as promoters they have infused ₹8,339 crore into the group's cement subsidiary Ambuja Cements Ltd by fully subscribing to the latter’s warrants programme. With this, the Adani family has infused a total of ₹20,000 crore into the country’s second-largest listed cement maker and increased its stake further by 3.6% to around 70.3%.
The latest capital infusion follows an investment of ₹5,000 crore into Ambuja on 18 October 2022 and then ₹6,661 crore on 28 March 2024 (which was for part-issuance of the shares). The Adani group had acquired Ambuja Cements in 2022.
“This infusion of funds provides Ambuja, capital flexibility for fast-tracked growth, capital management initiatives and bestin-class balance sheet strength,” Ajay Kapur, whole time director and CEO, Ambuja Cements, said in a statement.
“It is not only testament to 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 continue to deliver on operational excellence, business synergies and cost leader
The latest capital infusion follows an investment of ₹5,000 crore on 18 Oct 2022 and then ₹6,661 crore on 28 Mar 2024
ship,” added Kapur.
The latest move, according to the statement, is part of their commitment to have robust capital management and the promoter’s aim 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 capitalize on emerging opportunities in the market,” said the statement.
The company said the latest fund infusion will help the group achieve its target capacity of 140 million tonnes per annum by 2028 in the cement business. The investment will enable various strategic initiatives including de-bottlenecking capex to enhance operational performance, as well as bringing efficiencies across resources, supply chain, it said.
Barclays Bank PLC, MUFG Bank, Mizuho Bank and Standard Chartered Bank acted as advisors for the transaction.